The Ibovespa fell near 1% to 133,000 on Thursday following the new US tariffs on Brazilian products due next week, despite some sector exemptions. Also, Brazil’s central bank paused its tightening cycle by holding the Selic rate at 15% and signaling it will maintain the level for a prolonged period due to uncertainty surrounding trade policy. President Lula condemned the US’s 50% tariff as politically motivated and a threat to national sovereignty. Foreign Minister Mauro Vieira met with US Secretary of State Marco Rubio in Washington - the first official contact since Trump’s return to the presidency - to address the issue. Trump linked the tariffs to the legal treatment of former president Jair Bolsonaro, but softened the blow by exempting key sectors such as aircraft, energy, and orange juice. Vale (-1.4%), CSN (-1.3%), and Gerdau (-1.2%) dropped as ferrous metal benchmarks tumbled, while Embraer surged nearly 6% on news of the exemption, extending this week's rally to 25%.