FX.co ★ Ibovespa Retreats After US Tariff Rollout

On Thursday, the Ibovespa index decreased by about 0.6%, slipping below the 131,190 mark. This decline was driven by new U.S. tariff measures announced by President Trump, which involve a minimum 10% surcharge on all Brazilian exports. Such measures have unsettled large export-focused companies. The tariffs, intended to address what is perceived as trade imbalances, have sparked global risk aversion and heightened fears of a possible recession, potentially diminishing the demand for Brazil's commodity exports. Expectations of retaliatory measures from other trade partners, alongside increased input costs, reduced industrial production, and slow manufacturing growth, have added to domestic economic challenges, leading to a widespread retreat in Brazilian equities. Sectors such as energy and mining have been notably impacted, with Petrobras seeing a decline of over 3% and Vale dropping more than 1.5% as investors evaluate their positions against the backdrop of growing uncertainty over the long-term effects of these tariffs.