Trade deficit with the United States but still subject to 50% tariffs, Brazilian assets plummet.

Trump threatened to impose a 50% tariff on Brazilian goods, causing the Brazilian currency to plummet. The Brazilian Real fell nearly 3% against the US dollar, and the US-listed iShares MSCI Brazil ETF dropped nearly 2% in after-hours trading. In his latest letter, Trump used the word "reciprocal", and Brazil is the first country to receive the letter without a trade surplus with the United States. The United States is Brazil's second largest trading partner, and such high tariffs could cause significant harm to some industries in this South American country. Felipe Arslan, CEO of Morada Capital, said, "Steel products, transport equipment, professional machinery, and non-metallic minerals account for a large portion of Brazil's exports to the United States." After the news came out, the American Depositary Receipts (ADR) of Brazilian aircraft manufacturer Embraer plunged 9% in after-hours trading.