Good morning! We’re covering today Donald Trump’s “trade war” with Brazil. A gaffe putting Brazil between Taipei and Beijing. GDP figures for Q3. And Brazil’s education problem. (This newsletter is for platinum subscribers only. Become one now!)
Erratum: Yesterday’s Weekly Report contained a mistake. Our chart “Who is more protectionist?” informed that the data was related to 2008-2009, where it should have read 2008-2019. The information has been corrected in our archives.
With no China deal, Trump charges at Brazil
Negotiations between China and the U.S. have as yet failed to produce a deal to end the trade war between the world’s two major powers—but that isn’t stopping U.S. President Donald Trump from picking new fights. Yesterday, he announced on Twitter that he would slap new tariffs on steel products from Brazil and Argentina, claiming both countries have intentionally devaluated their currencies.
Why it matters. The U.S. is the biggest importer of Brazilian steel products—and Brazil’s second-largest overall trade partner.
What’s behind? Mr. Trump’s arguments don’t hold water. The Argentine Peso and the Brazilian Real have lost value despite the interests of these countries’ governments. “We could interpret this move as political retaliation for Brazil’s recent rapprochement with China—and a...