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1. US imposes 10% tariff on Brazilian products

United States President Donald Trump has announced a 10% tariff on imports from Brazil. The measure is part of a new US trade strategy aimed at correcting what Trump described as “unfairness” in the country’s trade relations. The announcement was made during an event at the White House, where the president stated that this policy would strengthen US industry and the job market.

The tariffs will take effect immediately and add to other protectionist measures already in place, such as the 25% tariff on steel and aluminum imports imposed in March. Currently, the trade balance between the two countries is unfavorable for Brazil, which exported $40.3 billion to the US in 2024 while importing $40.6 billion, resulting in a $283 million surplus for the US.

Among Brazil’s main exports to the US are crude petroleum (14%), iron and steel (8.8%), and aircraft (6.7%). Meanwhile, the most imported products from the American market include non-electric engines and machinery (15%), fuel oils (9.7%), and aircraft (4.9%). The impact of the new tariff is yet to be assessed, but the measure could hinder the competitiveness of Brazilian products in the US market and escalate trade tensions between the two countries.

CNN Brasil: Trump anuncia tarifa recíproca de 10% para o Brasil
G1: Brasil está entre os menos impactados por tarifas de Trump; o que acontece agora

2. Survey shows worsening perception of the country

A Genial/Quaest survey revealed that 56% of Brazilians believe the economy has worsened over the past 12 months, a significant increase from January, when this perception was at 39%. Additionally, 53% of respondents said finding a job has become more difficult, and 81% feel their purchasing power has declined compared to the previous year. Most also noted rising prices for food (88%) and fuel (70%), reinforcing dissatisfaction with the country’s economic situation.

The survey also indicated that disapproval of President Lula’s government has risen to 56%, while approval has dropped to 41%. Dissatisfaction is higher among men (59%), young people aged 16 to 34 (64%), and those with a college degree (61%). The Northeast region remains relatively balanced in approval and disapproval (52% vs. 46%), while the Southeast and South show higher rejection rates. Compared to previous administrations, 53% of respondents believe the current government is worse than Lula’s previous terms, and 43% consider it inferior to Jair Bolsonaro’s presidency.

G1: Quaest: 56% consideram que economia brasileira piorou nos últimos 12 meses

3. Government highlights advances in solidarity economy

President Luiz Inácio Lula da Silva and Minister of Labor and Employment Luiz Marinho welcomed representatives of the solidarity economy to Palácio do Planalto to discuss progress in this economic model in Brazil. During the meeting, Lula reaffirmed the government’s commitment to creating conditions for solidarity enterprises to grow and drive sustainable development. Successful initiatives were presented, including waste-picker cooperatives, community banks, and Justa Trama, an agroecological cotton brand involving workers from five states.

Among the highlighted cases was Banco Palmas, Brazil’s first community bank, which has expanded to 182 branches nationwide, providing accessible credit and strengthening local commerce. Other innovative initiatives were also shared, such as the Liga Coop mobility app and sustainable agricultural cooperatives. The government emphasized the importance of public policies to boost the solidarity economy, promoting social inclusion and opportunities for thousands of Brazilian workers.

Agência GOV: Governo Federal recebe representantes da economia solidária e destaca avanços do setor

4. Economic growth forecast lowered

The financial market’s projection for Brazil’s Gross Domestic Product (GDP) growth in 2025 has been slightly reduced from 1.98% to 1.97%, according to the Central Bank’s Boletim Focus. Despite the slight decline, the estimate for 2026 remains at 1.6%, while growth for 2027 and 2028 is expected to stay at 2% per year. In 2024, the Brazilian economy grew by 3.4%, marking four consecutive years of expansion. The exchange rate forecast predicts the US dollar will reach R$ 5.92 by the end of 2025.

Inflation remains above the target set by the National Monetary Council, with the IPCA projected at 5.65% for this year. To curb rising prices, the Central Bank continues its restrictive monetary policy, keeping the Selic interest rate at 14.25% per year. The Monetary Policy Committee (Copom) has indicated that further rate hikes may occur, albeit at a slower pace. While higher interest rates aim to control inflation, they could also impact economic growth by making credit more expensive and discouraging consumption.

Agência Brasil: Mercado reduz previsão para expansão da economia em 2025

5. Central Bank announces Pix as loan collateral 

The president of Brazil’s Central Bank, Gabriel Galípolo, announced that the Brazilian instant payment system, Pix, will be upgraded with new features, including “Pix Garantido”, which will allow it to be used as collateral for obtaining credit. The goal is to facilitate loan access for businesses with future receivables. Additionally, the Central Bank plans improvements to contactless Pix transactions and the launch of “Pix Parcelado” in September, a feature similar to credit card installments but with potentially lower interest rates.

Another priority for the Central Bank is enhancing Pix security, with measures to track suspicious transactions and prevent fraud, including the removal of millions of keys linked to irregular CPF numbers. Galípolo also highlighted ongoing development of Drex, the digital version of the Brazilian real, which faces technical challenges related to privacy and regulation. As the Central Bank celebrates its 60th anniversary, it remains focused on innovation and expanding access to credit.

Agência Brasil: Presidente do BC anuncia uso de Pix como garantia de empréstimos