Ibovespa Plummets Over 1% on New 25% US Tariff

The Brazilian stock market faced intense risk aversion during Thursday's trading session. The benchmark Ibovespa index fell 1.24% to close at 173,825.27 points, while the US dollar rose 0.40% to end at R$ 5.10 (specifically R$ 5.0990). The sharp market correction follows the official confirmation by the Office of the United States Trade Representative (USTR) of a new 25% tariff on a wide array of Brazilian goods, set to take effect on July 22, 2026.

The newly imposed 25% tariff will target over 800 Brazilian export items, including key industrial and agricultural products such as ethanol, steel, paper, and agricultural machinery. Washington’s decision follows a yearlong trade investigation into what the U.S. government deemed unfair trade practices by Brazil. While the U.S. expanded its list of exemptions to exclude major commodities like coffee and beef, the threat of localized economic disruption and potential retaliatory measures by Brasília has heightened market anxiety.

The tariff announcement triggered a broad sell-off across major sectors on the B3, dragging down heavily weighted blue-chip equities. Financial giant Itaú Unibanco (ITUB4) dropped 1.37% to close at R$ 42.55, leading losses in the banking sector. State-run oil firm Petrobras (PETR4) fell 1.73% to R$ 39.89, tracking both domestic caution and weaker global crude prices. Mining giant Vale (VALE3) also slid 2.05% to close at R$ 72.98, further compounding the index's downward momentum.