Trump's latest tariff, slapping 50% on Brazil, tread into new territory.
- the US runs a trade surplus with Brazil, there is no deficit to 'fix'
These are political tariffs, not economic. Trump clearly stated this in his letter to the Brazilian President:
The real fell earlier and it added to its losses on Trump's posting.
Please note, I posted two investment bank warnings of EM weakness in the last 24 hours;
- J.P. Morgan revises EMFX overweight call, citing overbought signals
- UBS: Emerging market stocks not fully pricing in tariff risks
