São Paulo stock exchange closes stable ahead of new U.S. tariff

Brazil's main stock exchange in São Paulo closed Tuesday with a marginal 0.03% drop, as investors awaited the implementation of a new 25% U.S. tariff on certain Brazilian imports. The Ibovespa index settled at 173,325 points after a volatile session that saw it dip to 172,000 units midday.

The new U.S. tariff, set to take effect Wednesday, exempts around 2,100 products including coffee, meat, and oil. However, the American Chamber of Commerce for Brazil (Amcham Brasil) estimates the measure will cost the country $11.2 billion in exports. Attention is now focused on the Brazilian government's response, which is reportedly considering measures under a reciprocity law passed in April 2025.

Despite the uncertainty, several major Brazilian companies saw positive performance. Petrobras shares rose 1.24%, and mining giant Vale gained 0.61%. Major banks also closed higher, with Banco do Brasil leading the gains at 3.52%, followed by Bradesco (0.76%), Santander Brasil (0.74%), and Itaú Unibanco (0.54%).

On the other end, the health group Oncoclínicas do Brasil surged 50%, recovering from recent losses. Heavy engineering firm Azevedo & Travassos S.A. advanced 15.15%. Conversely, retail companies Grupo Toky and Enjoei SA were among the biggest losers, falling 13.73% and 12.12% respectively. Trading volume on the São Paulo exchange reached approximately 18.3 billion reais ($3.6 billion).