São Paulo stock exchange plummets 2.22% amid new U.S. threats

Brazil's main stock exchange in São Paulo experienced a significant downturn, with the Ibovespa index plummeting 2.22% to close at 170,330 points. This decline was largely driven by losses in major companies like mining giant Vale, which fell 3.78%, and state-controlled oil company Petrobras, down 0.77%. The market's negative trajectory resumed after a brief recovery on Tuesday, ending a five-day losing streak. The drop occurred against a backdrop of threats from the United States to impose new tariffs on Brazil. The White House has warned of a potential 25% tariff for alleged unfair competition practices and another 12.5% for the supposed use of forced labor. In response, Brazilian President Luiz Inácio Lula da Silva stated that the country does not deserve such treatment and is prepared to seek alternative markets if the tariffs are implemented. Despite a 14% decrease in exports to the U.S. during May, Brazil's trade surplus saw an increase of nearly 11% compared to the same month in 2025. In currency markets, the Brazilian real depreciated by 1.15% against the dollar, which closed at 5.067 reals for selling and 5.066 for buying.