Brazil in June 2026: the most important developments in economy
In June 2026 the dominant economic story in Brazil was the dispute with the United States over tariffs. On June 2 the government held an emergency meeting after President Donald Trump announced new tariffs, and a son of Jair Bolsonaro asked Trump to avoid additional duties on Brazilian goods. The US accused Brazil of using forced labor in cattle farming, and a US report linked the expansion of Brazilian soy to deforestation. By June 4 Brazilian officials were cautiously optimistic about blocking a 25% tariff, seeing better odds than against a 12.5% list, and Fernando Haddad and Foreign Minister Mauro Vieira denied there was a basis for a tariff increase. The national industry confederation CNI said additional US tariffs could affect more than half of Brazil's exports. No resolution was reported by month end.
Investment and deals formed a second theme. Abu Dhabi's AD Ports bought the port terminal operator CLI for 3 billion dirhams. Petrobras and IG4 became co-controllers of Braskem, Mercuria agreed to buy Raizen's Argentine fuel assets for $1.4 billion, and Pemex sought deepwater drilling expertise from Petrobras. Atlas Renewable froze $1 billion in solar projects, citing regulatory uncertainty. Brazil planned to issue its first panda bond during a state visit to China, and the European Union courted Brazil as a partner for critical minerals. Minas Gerais attracted R$150 million for critical minerals extraction.
The war involving Iran weighed on several sectors. Embraer said airlines were delaying option decisions, while reaching 500 orders for its E2 jets. Azul planned further flight cuts as fuel costs rose, and fertilizer prices squeezed Brazilian farmers. Vale's chief executive said metals demand remained robust.
At home, the power market faced a liquidity crisis amid rising costs and supply problems. In an election year, Lula's social benefits reached R$215 billion, and on June 30 he expanded a benefits package and the government announced more funds for agribusiness. Petrobras cut diesel prices by R$0.35, and a regulator approved a 10.2% tariff increase for Enel São Paulo customers.
by WorldBrief & Maksim Micheliov | AI-generated summary
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