Tariff crisis Trump's tariff policy

The tariff dispute is underway: "If he charges 50, we will charge 50"

Brazilian President Lula da Silva is ready to take action against the United States, and one of the options is to impose reciprocal tariffs. This is reported by Reuters.

The president lists several options for action: demanding explanations, proposing investigations and turning to the World Trade Organization WTO. But there is an additional option that he prefers.

- The most important is the law on reciprocity, which was passed by Congress. If he charges 50 percent, we will charge 50 percent, he tells the local news channel Record, according to Reuters.

The fear index plummets despite the tariff threat: "I don't care"

The concern about Trump's tariffs has disappeared from the market, reports the Financial Times, referring to the stock exchange's so-called fear index, the Vix, which is at its lowest point in a year.

Vix is ​​well below its historical average.

– I don't care about tariffs anymore, says HSBC equity strategist Max Kettner to the business magazine and continues:

– This is completely self-inflicted, what's stopping them from saying: we'll postpone this for another three months?

Investors have started to take the president's threats less seriously, and many are betting that he will ultimately back down from the tariffs. The strategy is known in the market as "Taco", an acronym for "Trump always chickens out". 

Coffee prices rise after Trump's latest tariff play

The market price of coffee on the New York commodity exchanges rises about 3.5 percent after US President Donald Trump threatened the important growing country Brazil with general tariffs of 50 percent. This is reported by the Financial Times.

“Ultimately, the price of coffee will rise in the United States, so it will be more expensive for American consumers,” says Giuseppe Lavazza, chairman of the coffee company Lavazza.

Trump wants to use his tariff threat against Brazil to force the country to drop an ongoing legal case against former President Jair Bolsonaro, who was indicted after a failed coup attempt.