President Donald Trump announced plans to impose a 50% tariff on goods from Brazil, accusing the country of carrying out a “witch hunt” against former Brazilian President Jair Bolsonaro. Bolsonaro is facing charges of plotting a coup to block the current president, Luiz Inacio Lula da Silva, from taking office back in 2023. The proposed tariff would be the highest rate set since the extended July 9th pause in additional import taxes.

Focusing on this issue, Alvaro Vargas Lllosa points out how interventionist posturing actually props up authoritarian regimes abroad. While the tariffs are ostensibly to punish Lula’s prosecution of Bolsonaro, the danger of wielding trade as a geopolitical tool risks freedom both abroad and domestically.

Also this week, Brady Leonard highlights a small but meaningful victory hidden among the Big Beautiful Bill.

Ricardo E. Calvo argues that Cuba’s future requires substantial reform, not window dressing.

Samuel R. Staley warns that uncertainty is itself an economic cost.

Allen Gindler provides insight on the boom-bust cycle.

Happy reading!

Jonathan Hofer
Managing Editor