Don’t take our word for it, look at the data and see for yourself the degree of impact a full scale US trade war would have on Brazil:
That’s right. The total value of Brazil exports to the US is less than 2% of GDP and trade overall is only 26% of GDP. The country you want to watch is Mexico, which we’ll drill into another time when there’s more information from the new Administration. But the fact is this: from a trade standpoint commodities are its main export. IF you believe commods are going higher (or at least NOT going lower), the collective impact of a full blown trade war with Brazil is zilch. And arguably, IF you believe the US is entering a period of deficit spending focused on infrastructure, where do you think the raw materials for all of those bridges comes from? Ohio? No. Brazil.