Brazil’s stock market fell after Trump’s 50% tariff threat on imports, citing political disagreements. The real currency rebounded after slumping 2.8% Wednesday. U.S.-listed Brazilian shares dropped, with Itau Unibanco and Banco Santander Brasil falling. Brazil’s 10-year bond yield rose to 13.892%. Bonds have performed well in emerging markets this year.

Brazil’s bonds have returned almost 8% in dollar terms and 20% in local currency. The local stock market hit a record high and MSCI’s Brazil stock index is up 25%. Trump’s tariff reasoning centered on grievances against former president Bolsonaro. Economic implications are modest, as only 10% of exports go to the U.S.

Brazil faces trade deficit with the U.S., risking price rises on staples like coffee and orange juice. A third of U.S. coffee and over half of orange juice come from Brazil. Trump’s tariff threat follows a pledge to impose 10% tariff on BRICS nations, calling them “anti-American.” Currency volatility remains high.

Read more at Yahoo Finance: Brazil stocks slip, real rebounds after Trump’s 50% tariff threat