The threatened measures against Brazil will add to the growing uncertainty and fears in financial markets as to where the tariff war is leading, causing further questions to be raised about the stability of the US dollar as the global reserve currency.

President Donald Trump’s threat to boost import taxes by 50% on Brazilian goods could drive up the cost of breakfast in the United States. The prices of coffee and orange juice — two staples of the American morning diet — could be severely impacted if there's no agreement by Aug.

Brazilian President Lula da Silva vowed to trigger Brazil's reciprocity law if negotiations with the U.S. fail.