Brazil Investors Warn of Political Impact of Tariffs in Election

At a large financial market gathering in Sao Paulo, Donald Trump’s threat to impose 50% tariffs on Brazil barely registers as a primary economic concern. What’s truly unsettling money managers is the political fallout — the broader storm unleashed by the US president ahead of next year’s elections.

Since Trump issued the July 9 threat in retaliation for what he called a “witch hunt” against Jair Bolsonaro, his conservative ally in Brazil, leftist President Luiz Inacio Lula da Silva has seen a boost in popularity that’s strengthening his reelection bid.