The Brazilian real strengthened against the US dollar, with the currency falling to R$5.40–R$5.42 in early July 2025, marking its lowest level since August 2024. This decline was accompanied by a modest drop in the Ibovespa index, which fluctuated around 135,000 to 139,000 points during this period. However, tensions escalated following US President Donald Trump's announcement of a 50% tariff on Brazilian products, which triggered a sharp rise in the dollar to as high as R$5.58 and caused the Ibovespa to decline, reaching lows around 135,000 points. The tariffs also targeted the European Union and Mexico, contributing to increased market volatility. Despite these pressures, Wall Street stocks closed marginally higher, with investors focusing on upcoming US economic data and the earnings season. By mid-July, the dollar retreated slightly to R$5.55 amid ongoing trade negotiations, US inflation data, and China's GDP figures, while the Ibovespa stabilized after a volatile session. The market remained cautious as the trade tensions and tariff threats continued to influence investor sentiment.