11-07-2025
Brazil Bulls Hold Firm as Trump Drags Country Into His Trade War
Money managers from Aberdeen Group Plc to Franklin Templeton are staying bullish on Brazil, betting the country will withstand its unexpected turn in the epicenter of Donald Trump's trade war.
One reason: The fairly closed Brazilian economy, which depends much more on China than the US, can probably withstand the 50% tariffs even if they do come into effect, they say. But on top of that there's a suspicion the spat between Trump and President Luiz Inacio Lula da Silva might follow a familiar playbook: a brief market shock, followed by a rebound as the US president dials down his threats — a pattern behind what has become widely known as the TACO trade.
