US Administration imposes tariffs on Brazil and Copper ahead of 1st August deadline 

The United States has imposed a 50% on tariff on Brazil as a part of a wide raft of tariffs that also includes a 50% tariff on copper, all of which are set to go into effect on the 1st August. 

The tariff on Brazil excludes the most significant Brazilian exports to the United States that includes orange juice, Embraer aircraft, oil, coal, minerals, various chemicals and Brazil nuts, according to CNN. Coffee is not exempt from the tariffs, which Brazil exported $1 billion to the US last year, according to our ALPS Marine analysis. 

Media reports say that the tariffs were imposed because of the trial of former Brazilian President Jair Bolsonaro, who is alleged to have attempted a coup against the current Brazilian President, Luiz Inácio Lula da Silva. Bolsonaro has close links to the Trump Administration. 

Brazil had an annual flow of trade of $59 billion with the US last year, with Crude Oil ($8 billion), Iron & Steel ($4 billion), Wood & Wood Products ($3 billion) being the most popular products exported to the US, according to our ALPS Marine analysis. 

We had recently explored the trade relationship between Brazil, US and China in a recent issue of our annual Trade Threat Intelligence series.  

Alongside the Brazilian tariffs, the Trump administration imposed a 50% universal tariff on imports of semi-finished copper products that include pipes, wires and sheets. This will not include copper products that have already been exempt from the auto tariffs. 

The tariffs will not include refined copper, which is a critical component for manufacturing. Last year, the US imported $141 billion worth of refined copper, according to our ALPS Marine analysis. 

Copper prices are set for the biggest single-day record price drop, according to Factset.