WSJ What’s News - Episode: Trump Threatens 50% Tariffs on Brazil

Release Date: July 10, 2025
Host: Luke Vargas
Producer: The Wall Street Journal

1. Introduction

In today’s episode of WSJ What’s News, host Luke Vargas delves into a series of significant geopolitical and economic developments shaping global markets. The primary focus centers on President Donald Trump’s aggressive tariff strategies, including a substantial 50% tariff threat against Brazil, alongside new tariffs on copper. Additionally, the episode covers the UK and France’s strategic move to extend nuclear protections in Europe, Russia’s continued aggression in Ukraine, and notable corporate developments in the global market.

2. Trump’s 50% Tariffs on Brazil

President Trump has escalated his tariff campaign by threatening a 50% duty on Brazilian exports, marking the highest reciprocal tariff rate he has proposed to date. This move is unprecedented in Trump’s trade policy, particularly because it targets a political ally.

Key Points:

• Scope and Impact: The tariffs, if implemented next month, could potentially sever the economic relationship between the U.S. and Brazil, America’s 16th largest trading partner. Key exports from Brazil to the U.S. include coffee, machinery, oil, and various chemicals.

• Gavin Bade’s Insights (02:00):

  “At a 50% tariff, it's hard for me to see how really any of those products would be competitive with domestically sourced products or certainly with imports from around the world.”
  — Gavin Bade, WSJ Trade Reporter

• Political Motivations: This is the first instance where Trump has directly linked the tariffs to a political motive, citing legal actions against former Brazilian President Jair Bolsonaro. Bolsonaro, a right-wing leader, is currently on trial for an alleged coup attempt against Brazil’s government.

• Negotiation Tactics: Bade suggests that Trump’s move may be both punitive and a negotiating strategy to exert pressure on Brazil. However, the Brazilian government, under President Luiz Inácio Lula da Silva, is unlikely to relent, given Lula’s stance against U.S. intervention and his alignment with other global powers like China and Russia within the BRICS consortium.

Gavin Bade’s Analysis (03:16):

“We have heard from Lula, the sitting president, who said, we're not going to accept any sort of foreign interference or tutelage...”
— Gavin Bade

• Legal Challenges: The tariffs are slated to face legal scrutiny, especially after a federal trade court previously ruled Trump lacked the authority for broad tariff impositions. Bade points out that without a clear legal foundation, particularly given that the U.S. actually maintains a trade surplus with Brazil, these tariffs may falter in court.

3. New Copper Tariffs and Market Reactions

Alongside tariffs on Brazil, Trump has announced a 50% levy on copper imports effective August 1. This decision has significantly impacted the commodities market, with copper prices surging and mining stocks rallying.

Key Points:

• Importance of Copper: Copper is essential in various industries, including electronics, construction, and defense. The U.S. consumes about half of its copper production, relying heavily on imports to meet demand.

• Joe Wallace’s Breakdown (06:32):

  “Copper is used in pretty much everything, a lot of electronics, construction, no doubt. It has all sorts of defense applications...”
  — Joe Wallace, WSJ Contributor

• Market Impact: Copper prices have increased by 40% this year, benefiting copper producers like Freeport, McMorran, Glencore, and Rio Tinto. Conversely, U.S. consumers of copper, including electronics and manufacturing firms, face higher costs.

• Global Implications: Reduced U.S. imports may lead to lower copper prices globally, benefiting consumers in Europe, Asia, and the Middle East.

Joe Wallace’s Insights (07:13):

“Anyone producing copper in the US or elsewhere for that matter, is a big beneficiary. We've seen mining stocks... posting some quite significant gains.”
— Joe Wallace

4. UK and France Extend Nuclear Protection in Europe

In a strategic defense maneuver, the United Kingdom and France have announced coordination in the use of their nuclear weapons to respond to major threats against Europe. This pact aims to provide a robust nuclear deterrent for the continent amidst rising concerns over Russian aggression.

Key Points:

• Defense Strategy: The coordination signifies a move towards greater European self-reliance in defense, potentially reducing dependence on the United States.

• Alistair McDonald’s Commentary (09:20):

  “The message to the U.S. is that, yeah, we're more than capable of standing up for ourselves in the making. And the message to the rest of Europe is that you are now under our nuclear umbrella.”
  — Alistair McDonald, Defense Reporter

• Reassurance to Allies: This move is intended to reassure European allies regarding their security, especially if there are doubts about U.S. commitment.

5. Continued Russian Aggression in Ukraine

Russia has intensified its assault on Ukraine, targeting Kyiv with a major missile and drone attack overnight, resulting in fires and fatalities. This attack follows a massive offensive the previous day, where Russia deployed 728 drones and decoy munitions against western Ukrainian cities.

Key Points:

• Ukrainian Response: Ukrainian President Volodymyr Zelensky condemned the attacks, asserting that they demonstrate Russia’s unwillingness to seek peace.

6. U.S. Political Developments

In domestic news, President Trump has appointed Transportation Secretary Sean Duffy as the interim chief of NASA, following the withdrawal of his previous nominee, Jared Isaac Mitten. Trump questioned Mitten’s political donations and associations with Elon Musk, leading to his replacement.

7. Corporate News: Ferrero Eyes Acquisition of W.K. Kellogg

Ferrero, the renowned Italian confectionery company behind brands like Ferrero Rocher and Nutella, is nearing a $3 billion deal to acquire breakfast cereal giant W.K. Kellogg. This potential acquisition includes popular products such as Froot Loops, Frosted Flakes, and Rice Krispies. This move follows Kellogg’s strategic spin-off of its North American cereal business into a separate entity, Kellanova, which was sold to Mars in a $30 billion deal last year.

Key Points:

• Strategic Expansion: Ferrero’s acquisition would significantly expand its footprint in the breakfast cereal market, complementing its existing product lines.

8. Conclusion

Today's episode of WSJ What’s News provided an in-depth analysis of President Trump’s aggressive tariff strategies and their far-reaching implications on international trade and global markets. Additionally, strategic defense moves by the UK and France, ongoing conflicts in Ukraine, significant political appointments in the U.S., and major corporate acquisitions highlight the complex interplay between politics, economics, and global security.

Notable Quotes:

• Gavin Bade (01:51):

  “Most people are of the opinion in the trading community around D.C. certainly on Capitol Hill, that the rest of these letters... are basically looking to up the ante in negotiations.”

• Alistair McDonald (09:20):

  “The message to the U.S. is that, yeah, we're more than capable of standing up for ourselves in the making.”

For more detailed insights and updates, tune into the next edition of WSJ What’s News.