Impact of U.S. 50% Tariffs on Brazilian Export Sectors and Economy

• Trump's proposed 50% tariff disrupts Minas Gerais steel industry: Several steel companies in Minas Gerais halted production and gave collective vacations due to reduced U.S. orders. Minas Gerais exports 84% of its iron production to the U.S., making the tariff economically unfeasible for both importers and exporters. Industry and government officials are seeking solutions including tax incentives to explore other markets .
• Orange juice industry faces potential R$ 4.3 billion loss from U.S. tariff: The U.S. imposed a 50% tariff effective August 1, 2025, increasing taxes by 456% over the previous season. The U.S. accounts for 41.7% of Brazilian orange juice exports, and no alternative markets can absorb this volume, threatening the supply chain and raising global tax burdens from US$ 393.6 million to US$ 1.3 billion .
• Embraer faces risk from U.S. 50% tariff on jets: SkyWest, a major Embraer aircraft buyer, refuses to pay the tariff and may delay or cancel orders. Embraer controls 80% of the U.S. regional aviation market. The CEO is negotiating with U.S. officials to resolve the issue, as the tariff could delay deliveries and hurt financial performance .
• IMF revises Brazil's 2026 GDP growth to 2.1% amid tariff concerns: Although slightly increased from 2.0%, the growth forecast is slower than 2025's 2.3%. The IMF warns the U.S. tariff could cost Brazil R$ 175 billion in GDP and 1.3 million jobs over a decade. The Brazilian government is preparing contingency plans. Brazil's economy grew 1.4% in Q1 2025, with a restrictive Selic rate at 15% .
• Brazil requests U.S. tariff exemptions for certain products: Brazil has asked the U.S. to exclude foods and Embraer aircraft from the 50% tariff, aiming to mitigate economic damage .
• U.S. has second lowest import tariff on Brazilian products at 5.5% in 2024: Despite this, the U.S. plans to impose a 50% tariff due to perceived unfair trade practices. The U.S. had a $7 billion goods trade surplus with Brazil in 2024 .

Challenges in Brazilian Steel Industry and Automotive Sector

• Usiminas steel company undervalued amid market pressures: Usiminas trades at a low price-to-book ratio of 0.2x due to low steel prices from China, high imports, and deflation in Brazilian steel prices. EBITDA margin is 5%, insufficient for dividends or buybacks. The company faces difficulties executing a R$ 1 billion annual capex plan plus R$ 1.7 billion for modernization .
• BYD's proposed tax benefits for hybrid and electric cars may cost 50,000 jobs: The Brazilian government is considering reducing import taxes on BYD vehicle kits, sparking concerns from established automakers about jeopardizing R$ 60 billion in investments and turning Brazil into a low-complexity assembly hub, undermining local tech development and employment .

Market and Corporate Developments in Brazil

• iFood acquires 20% stake in CRMBonus, aiming for full acquisition: Valued above R$ 2.2 billion, iFood plans to expand beyond food delivery into offline markets and other verticals, with a potential R$ 10 billion valuation for CRMBonus within three years .
• Stellantis reports 2.3 billion euro loss and 13% revenue drop in H1 2025: The automotive group suffered due to declines in North America and Europe but saw growth in South America. CEO Antonio Filosa remains optimistic about recovery .
• Oman sovereign fund acquires control of Agribrasil and TESC: The acquisition aims to vertically integrate Brazil's grain export market, with Agribrasil showing 302% revenue growth in Q1 2025 and a turnaround to profitability. Regulatory approval is pending .
• Cosan plans to sell R$ 15 billion in assets by year-end: The sale includes a refinery and fuel distribution stations in Argentina and ethanol plants, as part of a strategy to streamline operations and raise capital .
• Telefônica Brasil (Vivo) expands fiber broadband, considering further acquisitions: Vivo now reaches 30.1 million homes and reported a net profit of R$ 1.3 billion in Q2 2025. CEO Christian Gebara signals potential acquisitions to grow fiber services .

Financial Market and Payment System Innovations

• Pix introduces installment payments, challenging Visa and Mastercard: The Brazilian Central Bank's Pix system accounts for 49% of financial transactions in Brazil. The new feature is expected to boost retail by offering flexible payments amid high interest rates and attract big tech integration, threatening traditional credit card revenues .
• CVM reverses decision on Ambipar controller's obligation to make public offer: The Brazilian Securities and Exchange Commission found no collusion, reducing market uncertainty and improving predictability .
• Azimut Wealth Management bullish on Brazil's long-term investment potential: Despite current fiscal and tariff challenges, Azimut anticipates economic adjustments and positions to benefit from diversification as interest rates decline. It manages R$ 12 billion in Brazil .
• Notary office revenues surge to R$ 3.5 billion in 2024: This increase reflects growing economic activity in legal and official documentation sectors .

Other Relevant Economic and Market Information

• Mega-Sena lottery prize rolls over to R$ 76 million: No winner for six-number draw; 52 winners of five numbers received R$ 67,184.51 each .
• Lotofácil lottery awarded R$ 1.8 million prize on July 29, 2025: Winning numbers and playing information provided .
• Brazilian income tax third batch refunds scheduled for Thursday: Routine financial event .
• Henrique Meirelles warns taxing the rich may reduce Brazil's competitiveness: Potential negative impact on investor sentiment and economic policy .
• H&M's higher pricing in Brazil signals potential retail market shifts: The company's pricing strategy in São Paulo may affect local competitors .
• Toyota Corolla GLI Hybrid launch expected in September 2025: Positioned as a more affordable hybrid, it may increase Corolla's market lead over BYD King .
• New Renault Boreal 2026 SUV to launch in December 2025: Competes in medium SUV segment with prices from R$ 200,000 to R$ 230,000 .
• Flight promotions between Brasília and Campinas available for low miles: Travel valid September-November 2025 and early 2026 .
• Rare 1 real coins with defects may be worth up to R$ 8,000 in 2025: Driven by collector demand .
• Carf cancels R$ 5.2 million fine on Amaggi based on STF thesis: Important legal and financial development for businesses .
• Brazilian beef exporters face potential $1 billion loss from U.S. tariffs: Coffee and cocoa may be exempt; IMF warns of economic slowdown due to tariffs .