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:

• Trump hits Brazil with a 50% tariff

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

This article was written by Eamonn Sheridan at www.forexlive.com.

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