Trump Slaps Tariffs on Brazil and 21 Other Countries – Markets React with Record Highs
- Trump’s Tariff Bombshell: Brazil and Beyond
- Markets Defy Trade Tensions: Nasdaq, Nvidia, and Bitcoin Soar
- Jobs Data and Inflation Warnings: A Mixed Bag
- The Global Domino Effect: 22 Countries in the Crosshairs
- FAQ: Your Tariff Cheat Sheet
In a bold move, former President Donald Trump announced sweeping tariffs targeting Brazil and 21 other nations, citing unfair trade practices and political retaliation. The markets responded with mixed signals—while Brazilian ETFs dipped, U.S. indices like the Nasdaq hit record highs, and Nvidia’s valuation briefly touched $4 trillion. Meanwhile, bitcoin soared past $112K, and economists warn of looming inflation. Here’s the full breakdown.
Trump’s Tariff Bombshell: Brazil and Beyond
Former U.S. President Donald TRUMP unleashed a wave of new trade tariffs, including a staggering 50% duty on imported copper and targeted measures against Brazil. In a Truth Social post, Trump tied the policy to Brazil’s legal actions against ex-President Jair Bolsonaro, calling the trade relationship “wildly one-sided.” Brazilian President Lula da Silva fired back, vowing reciprocal measures under the country’s economic reciprocity laws. The iShares MSCI Brazil ETF (EWZ) promptly dropped 2%, but the broader U.S. market shrugged off the news, with the Nasdaq Composite notching a fresh all-time high.
Markets Defy Trade Tensions: Nasdaq, Nvidia, and Bitcoin Soar
Despite the tariff turmoil, U.S. investors doubled down. The Dow Jones Industrial Average jumped 217 points (0.5%), while the S&P 500 edged up 0.2%. Tech stocks led the charge—Nvidia surged 47% since Trump’s tariff announcements and briefly flirted with a $4 trillion market cap, a historic first. Bitcoin, meanwhile, smashed records at $112,259. Trump cheekily credited his policies for Nvidia’s rally, tweeting, “Crypto through the roof! Fed should cut rates NOW—NO INFLATION!!” (Spoiler: The Fed hasn’t budged yet.)
Jobs Data and Inflation Warnings: A Mixed Bag
New jobless claims fell to 227,000 last week, beating estimates, but ongoing unemployment claims hit 1.96 million—the highest since November 2021. Bank of America economist Stephen Juneau cautioned that tariffs could reignite inflation: “We expect price spikes in coming months, partly from tariffs, partly from this equity rally.” Translation: Buckle up for bumpy economic weather.
The Global Domino Effect: 22 Countries in the Crosshairs
Brazil wasn’t alone. Trump’s team dispatched letters to at least 21 other nations, including Japan and South Korea, detailing tariffs set for August 1. Analysts at BTCC note the move echoes 2018’s trade wars but with higher stakes: “Markets are pricing in volatility, yet tech and crypto seem immune—for now.”
FAQ: Your Tariff Cheat Sheet
Which countries face new Trump tariffs?
Brazil and 21 others, including Japan and South Korea, per official letters reviewed by CNBC.
Did Nvidia really hit a $4 trillion valuation?
Briefly, yes—a first for any public company—before settling back.
How did Bitcoin react?
It surged to $112,259, a record high, per CoinGlass data.
