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    US-Brazil Tariffs: What to Know About Trump’s History With Bolsonaro

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    The fight is rooted in years of political history between President Trump and the last two presidents of Brazil.The Western Hemisphere’s two largest nations appear headed for a full-blown trade war — with a twist.President Trump on Wednesday pledged to impose 50 percent tariffs on Brazilian imports. His rationale wasn’t entirely economic — the United States has a trade surplus with Brazil — but political. Mr. Trump said Brazil was carrying out a “witch hunt” against his political ally, former President Jair Bolsonaro, who is facing trial for attempting a coup.A few hours later, President Luiz Inácio Lula da Silva of Brazil said his government would respond with its own tariffs on U.S. imports. “Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage,” he said in a statement.Brazil is weighing tariffs on specific American products or sectors, according to a senior Brazilian official who spoke on the condition of anonymity to discuss closed meetings. Seeking to minimize any jolt to Brazil’s economy, the government does not plan to apply broad-based tariffs on all American products, the official said.The feud is the latest in a long-running saga involving Mr. Trump, Mr. Bolsonaro and Mr. Lula, and it shows how Mr. Trump is using tariffs to settle scores against his political enemies.Here’s what you need to know:What did Trump threaten, and why?What products does Brazil export to the U.S.?What is Trump’s history with Bolsonaro and Lula?What is the case against Bolsonaro?What happens next?We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Treats Tariffs More as a Form of Power Than as a Trade Tool

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      Instead of viewing tariffs as part of a broader trade policy, President Trump sees them as a valuable weapon he can wield on the world stage.President Trump’s allies often describe him as a 40-year devotee of tariffs who, stymied by his first-term advisers, is finally able to put his long-held economic theory into practice.But while Mr. Trump spoke about tariffs off and on before becoming a presidential candidate, he usually described his broader grievance about trade in terms of other countries or companies “ripping off” the United States. It is since Mr. Trump became a candidate in 2015 that he has talked about tariffs in earnest, describing them as a tool that he could easily deploy to rebalance the country’s economic footing.“We are going to have 10 percent to 20 percent tariffs on foreign countries that have been ripping us off for years, we are going to charge them 10 percent to 20 percent to come in and take advantage of our country because that is what they have been doing,” Mr. Trump said in August 2024, one of many comments he made in that race emphasizing he would impose sweeping tariffs if he won, far beyond those in his first term.Mr. Trump’s latest retreat this week from his own self-imposed tariff deadlines underscores the challenge he has faced in treating tariffs as a quick-fix — a tool that he asserts will bring in lots of money for the country while swiftly resetting trade relationships.A review of Mr. Trump’s comments about tariffs over the decades shows he has often been fairly vague on the topic, and only more recently came to describe them as the centerpiece of his approach to trade.Far more frequent and durable has been Mr. Trump’s repeated refrain that other countries are turning the United States into “suckers.” His references to tariffs often came as part of his description of a feeling of national injury that became common as the country’s manufacturing base began eroding. That attentiveness to trade as an issue, even absent a cohesive policy plan, helped Mr. Trump win in 2016.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      What Happened in Trade Talks Between Japan and the U.S.

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      Tokyo had expected smooth tariff negotiations but is experiencing whiplash, becoming a central target of President Trump’s trade frustrations.Earlier this year, Japan’s relationship with the United States seemed to be on solid footing.Prime Minister Shigeru Ishiba met with President Trump at the White House in February and pledged to significantly boost investment in the United States. The two leaders talked about their “unwavering commitment” to what some U.S. diplomats have called the most important bilateral relationship in the world, bar none.Those ties appeared to count for something when the Trump administration announced so-called reciprocal tariffs on dozens of trading partners on April 2. Sure, the 24 percent rate handed to Japan from the top buyer of its goods was a blow. But Japan was the first major trade partner invited to Washington to negotiate those tariffs away.Now, Japan is dealing with diplomatic whiplash.On Monday, Mr. Trump delayed until Aug. 1 tariffs that were supposed to take effect on Wednesday for dozens of countries. Japan was among a subset of countries, along with a neighbor, South Korea, that received letters directing them to change what the White House called unfair trade policies.The announcement that Japan would be targeted with a new 25 percent tariff came after a week in which Mr. Trump repeatedly lashed out at the country, an ally, for its unwillingness to buy American cars and rice. He characterized Japan as “spoiled” and indicated that a trade deal was unlikely.On Tuesday, Mr. Ishiba said Japanese government officials had engaged in “earnest and sincere discussions” with counterparts in the United States. He called the U.S. announcement “deeply regrettable.”The international cargo terminal at the port in Tokyo.Kazuhiro Nogi/Agence France-Presse — Getty ImagesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Large Oil Producers Around the Persian Gulf Ramp Up Exports

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      Saudi Arabia and other oil states are rushing to load tankers in case the Israel-Iran fighting spreads to export installations.As fighting between Israel and Iran intensifies, the major oil producers around the Persian Gulf, including Saudi Arabia, have been racing to load tankers with exports, possibly as a hedge against future disruption.These increases are occurring despite jumps in insurance costs and shipping rates and hazards like jamming of navigation systems.Analysts say that these producers are preparing for the possibility that fighting could spread to oil export installations, which have been largely spared so far, or that shipping could be disrupted through the Strait of Hormuz, the narrow passageway from the Persian Gulf through which a large portion of both oil and liquefied natural gas travel.“They want to make sure that they reduce the risks,” said Homayoun Falakshahi, head of crude oil analysis at Kpler, a research firm. “That means export as much as possible, as soon as possible.”Kpler estimated that Saudi Arabia’s oil exports had increased 16 percent through mid-June from the same period in May.Other producers in the region like the United Arab Emirates and Iraq have boosted shipments around 10 percent, Mr. Falakshahi said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      The Markets Are Balancing on a Knife’s Edge

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      The world has been anything but peaceful, but you wouldn’t know that from looking at the markets.The calm in the markets has been unnerving.You might think the world has been enjoying a season so tranquil that the stock, bond and currency markets have fallen asleep.Yet the world has been anything but peaceful lately, whether in the United States, Ukraine or the Persian Gulf. And the Federal Reserve gave the markets another reason for concern on Wednesday when it held interest rates steady. Jerome H. Powell, the Fed chair, said that the economy faced the risks of both higher inflation and stagnating economic growth, but that the central bank needed more evidence before it could decide where the greatest dangers lay.“Right now, it’s a forecast in a foggy time,” he said. Even more than usual, the path ahead isn’t clear. Still, there was barely any reaction in market prices. Nor has anything else seriously disrupted major markets.That’s noteworthy, when you consider the crises that are looming: the highest tariffs in decades; a contentious crackdown on immigration and a swelling budget deficit in the United States; and, in the Middle East, an escalating war between Israel and Iran that could sharply reduce global oil supplies.This isn’t to say all markets have been entirely placid. The price of oil has oscillated since Israel launched a barrage of air attacks on Iran last Friday, setting off a new, heightened stage of conflict between the two longtime adversaries. President Trump has warned Iran’s supreme leader, Ayatollah Ali Khamenei, that the United States might intervene directly, saying, “Our patience is wearing thin.” The start of a much bigger war, with the United States joining the Israeli effort to eliminate Iran as a potential nuclear threat, would undoubtedly wake the markets from their apparent slumber.High StakesThe economic risks in the Persian Gulf are enormous. If Iran were desperate enough, in addition to targeting U.S. forces in the region it could throttle the oil supplies that pass through the Strait of Hormuz. Shipping through the strait encompasses one quarter of “total global seaborne oil trade,” according to the U.S. Energy Information Administration, and protecting that oil route has been a preoccupation of U.S. military planners since the days of the shah of Iran, who was deposed in 1979.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Flattery or Discipline? The Difficult Task of Managing Trump.

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      Canada’s prime minister Mark Carney deployed both methods on the first day of the Group of 7 summit in Alberta to keep Mr. Trump focused and avoid drama.Prime Minister Mark Carney of Canada began by wishing President Trump a happy birthday. He emphasized the importance of U.S. leadership in the Group of 7 alliance, which is meeting in Alberta, Canada.But after seven minutes of questioning by journalists during which Mr. Trump complained about Russia’s absence at the summit and attacked Democrats over immigration policies, the host of the summit had heard enough.He took a step forward and into the center of the frame and effectively stopped the questioning, preventing the American president from saying more.With war raging in the Middle East and U.S. tariffs hammering his own country’s economy as well as global trade, Mr. Carney was intent on limiting the chances of a Trump-related derailment of the gathering.“If you don’t mind, I’m going to exercise my role, if you will, as G7 chair, since we have a few more minutes with the president and his team and then we actually have to start the meeting to address some of these big issues,” Mr. Carney said. “So, merci beaucoup.”With that, the press was rapidly escorted out of the room.The brief moment at the start of the gathering provided a window into a daunting challenge for world leaders entering the summit: Just what is the best way to manage Mr. Trump on the global stage?We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Trade and Tax Policies Start to Stall U.S. Battery Boom

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      Battery companies are slowing construction or reconsidering big investments in the United States because of tariffs on China and the proposed rollback of tax credits.Battery manufacturing began to take off in the United States in recent years after Congress and the Biden administration offered the industry generous incentives.But that boom now appears to be stalling as the Trump administration and Republican lawmakers try to restrict China’s access to the American market.From South Carolina to Washington State, companies are slowing construction or reconsidering big investments in factories for producing rechargeable batteries and the ingredients needed to make them.A big reason for that is higher trade barriers between the United States and China are fracturing relationships between suppliers and customers in the two countries. At the same time, Republicans are seeking to block battery makers with ties to China, as well as those that rely on any Chinese technology or materials, from taking advantage of federal tax credits. The industry is also dealing with a softening market for electric vehicles, which Republicans and Mr. Trump have targeted. The China-related restrictions — included in the version of Mr. Trump’s domestic policy bill passed by the House — would be very difficult for many companies to operate under. China is the world’s top battery manufacturer and makes nearly all of certain components.The Trump policy bill highlights a difficult dilemma. The United States wants to create a homegrown battery industry and greatly reduce its dependence on China — and many Republican lawmakers want to end it altogether. But China is already so dominant in this industry that it will be incredibly hard for the United States to become a meaningful player without working with Chinese companies.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 138 Shares109 Views

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      As Trump Returns to G7, Rift With Allies Is Even Deeper

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      In 2018, the president called for the group to embrace Russia and stormed out of the summit. Now he is seeking to shrink America’s military role abroad and embarking on a more expansive trade war.When President Trump last attended a Group of 7 meeting in Canada, he was in many ways the odd man out.At that meeting, in 2018, Mr. Trump called for the alliance of Western countries to embrace Russia, antagonized allies and ultimately stormed out of the summit over a trade battle he began by imposing metals tariffs on Canada.As he returns on Sunday for the Group of 7 meeting in Alberta, those fissures have only deepened. Since retaking office, the president has sought to shrink America’s military role abroad and made threats to annex the summit’s host after embarking on a much more expansive trade war.Mr. Trump is now facing a self-imposed deadline of early July to reach trade deals. His trade adviser even promised in April that the tariffs would lead to “90 deals in 90 days.” Despite reaching framework agreements with Britain and China, the administration has shown scant progress on deals with other major trading partners.The future of the president’s favored negotiating tool is uncertain as a legal battle over his tariffs plays out in the courts. But a failure to reach accords could lead the Trump administration to once again ratchet up tariffs and send markets roiling.“I think we’ll have a few new trade deals,” Mr. Trump told reporters at the White House on Sunday as he left for the summit.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 125 Shares119 Views

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      Iran’s Vital Oil Industry Is Vulnerable in an Escalating Conflict

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      The country’s exports mostly come from Kharg Island in the Persian Gulf. But Israel’s energy facilities are also at risk.The conflict between Israel and Iran appeared to be spreading on Saturday to Iran’s energy infrastructure, raising fears about energy supplies from the Middle East.Iran’s oil ministry blamed Israeli drones for attacking part of the South Pars natural gas field, one of the world’s largest, and a refinery, causing fires at both.It is not clear how far Israel intends to go in attacking Iran’s energy facilities, a crucial source of export cash for the country as well as domestic energy that looks particularly vulnerable.“This is a first salvo into energy and a warning shot that Israel is willing to hit Iranian energy infrastructure if Israeli civilians are targeted,” said Richard Bronze, head of geopolitics at Energy Aspects, a research firm.Other Iranian installations are at risk, analysts say.“There is one clear target that would make it very easy if Israel or the United States wanted to impact Iran’s oil exports,” Homayoun Falakshahi, senior analyst for crude oil at Kpler, a research firm, said during a webinar on Friday. “And this is Kharg Island.”Nearly all of Iran’s oil exports leave from tankers at berths around Kharg Island, a small coral land mass in the northern part of the Persian Gulf off the Iranian coast, potentially making it a target in a protracted war, analysts say.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More