Trump’s Brazil Tariff Proposal Reportedly Draws Fire From Senate Democrats

President Donald Trump’s plan to slap tariffs on Brazil is facing resistance from top Senate Democrats, who say the move is driven by politics, not policy.

“We’re particularly concerned about these tariffs on Brazil — which are being put into place to get the Brazilian Supreme Court to stop its prosecution of Trump’s longtime friend Jair Bolsonaro, Brazil’s former president who is facing criminal charges for inciting a violent coup,” Senators Tim Kaine, Chuck Schumer, Jeanne Shaheen and Ron Wyden said in a statement cited by Bloomberg.

The White House announced on Wednesday that the U.S. would be implementing a 50% tariff on Brazil due to “national security” concerns around the treatment of former Brazilian President Jair Bolsonaro.

According to the report, the senators intend to file a privileged resolution. It would allow them to bypass procedural hurdles and force a vote on the floor. It would also require senators to go on the record with their position against the tariffs on Brazil.

Earlier this year, a similar move to end tariffs on Canadian goods passed with bipartisan support in the Senate. However, its companion resolution in the House was blocked before getting a vote.

The report noted that Trump has the power to veto such a resolution. However, Congress could override the veto with a two-thirds majority.

U.S equity markets shed earlier gains during midday trade on Thursday. The SPDR S&P 500 (SPY) was up 0.26% while the Invesco QQQ Series 1 Trust (QQQ), which tracks the tech-heavy Nasdaq 100, gained 0.27%. The SPDR Dow Jones Industrial Average (DIA) trended lower by 0.23%. 

On Stocktwits, retail sentiment around SPY, which follows the S&P 500 Index, remained in ‘extremely bullish’ territory over the past day. 

Read also: El-Erian Questions Whether The Fed Should Stick To Its 2% Inflation Target

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