Brazilian presidential candidate proposes suspension of tax reform
A presidential candidate from the Liberal Party (PL) has proposed suspending ongoing tax reform, introducing significant policy uncertainty. This shift threatens to disrupt the investment climate and complicates the fiscal outlook for Brazil as the election cycle intensifies.
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Brazil-US Trade Tensions
The Brazilian government is implementing measures to mitigate the impact of US trade restrictions, including a $3.6 billion industrial support package, while considering a WTO dispute against the US. Confidence in the assessment is medium due to uncertainties surrounding the effectiveness of these measures and the potential for further US trade policy shifts. The situation is complicated by domestic political dynamics in both countries, particularly in Brazil where trade issues are influencing electoral strategies.