Hello Capitalists,

Trump just announced new tariffs on Brazil, as he continues to leverage trade to fight for better deals for the American people. Gov. DeSantis wants to do away with property tax in Florida, which could cause a real estate gold rush. The Pentagon is getting involved in rare earth minerals, and more…

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Here’s everything you need to be following today:

Trump blasts Brazil with 50% tariff for treatment of Bolsonaro

President Donald Trump announced a 50% tariff on all Brazilian imports starting August 1, escalating tensions with Brazil's leadership and signaling a broader strategy to leverage trade policy for geopolitical aims, including support for former Brazilian President Jair Bolsonaro.

• Geopolitical Motivation: The tariffs appear linked to Trump's support for former Brazilian President Jair Bolsonaro, with tensions heightened by Brazil's current leadership under President Lula.

• Economic Impact: The move was quickly followed by a considerable jump in markets, but may pose potential disruptions to U.S.-Brazil trade, particularly affecting industries reliant on Brazilian goods like copper.

• Strategic Shift: Analysts view the tariffs as part of Trump's aggressive trade strategy, potentially targeting other nations to enforce compliance with U.S. interests.

The Pentagon is getting into the rare earth mining business and stocks are soaring

The Pentagon will become the largest shareholder in MP Materials, the only U.S. rare earth miner, with a $400 million investment to bolster domestic production of critical magnets for military and commercial use, the company announced Thursday, sending its shares surging over 40% in premarket trading.

• MP Materials, owns the only operational rare earth mine in the U.S. at Mountain Pass, California.

• MP Materials will use the funds to expand its rare earth processing and magnet production, including building a new facility, dubbed "10X," set to begin commissioning in 2028 with a capacity of 10,000 metric tons of magnets annually.

• The Pentagon guarantees a 10-year purchase of all magnets from the 10X facility for defense and commercial customers and will set a price floor of $110 per kilogram for NdPr products, a rare earth compound critical for magnets used in military systems like F-35 jets and drones.

• The deal, supported by a $1 billion commitment from JPMorgan and Goldman Sachs and a $150 million Pentagon loan, aims to reduce U.S. reliance on China, which dominates global rare earth production, amid recent export restrictions.

• The US is looking to increase its domestic rare earth metals mining and this has been a boom to mining company stocks such as Ramaco (METC) up 55% in the last month and American Resources (AREC) up 26% in the last month.

Former Fed Governor calls for “Regime Change” at the Fed over Powell’s bad policies

Former Federal Reserve Governor Kevin Warsh expressed support for President Donald Trump's frustration with Federal Reserve Chair Jerome Powell's restrictive monetary policies, arguing that high interest rates and outdated strategies are stifling U.S. economic growth.

• Former Federal Reserve Governor Kevin Warsh criticized the Federal Reserve's current policies, stating that they hinder U.S. economic growth, and expressed sympathy for President Trump's frustration with Fed Chair Jerome Powell's approach to interest rates.

• Warsh argued that the U.S. economy is poised for significant growth but is being held back by "bad" economic, supervisory, and monetary policies from the Federal Reserve, including a confusing set of standards.

• He suggested that lowering interest rates and reducing the Fed's balance sheet could act as a significant stimulus, likening a $2 trillion balance sheet reduction to a substantial rate cut to boost the real economy.

• Warsh emphasized the need for a "regime change" at the Fed, including new policies, personnel, and a modern understanding of inflation driven by money supply growth rather than high wages.

DeSantis aims to scrap all property taxes in Florida in game changing first in the nation move

Florida Gov. Ron DeSantis’ bold proposal to eliminate property taxes, aiming to make the state the only U.S. region without income or property taxes, has sparked fierce debate among real estate leaders, with some warning of funding shortfalls and others seeing it as a boon for homeowners and buyers.

• DeSantis’ Proposal: Florida Gov. Ron DeSantis’s proposal would require a constitutional amendment and 60% voter approval in 2026, to position Florida as the only U.S. state without state income or property taxes.

• Real Estate Divide: Industry leaders are split, with some supporting the plan for its appeal to buyers, while others warn of a “perfect storm” due to potential funding gaps for local services like schools and public safety.

• Funding Concerns: Critics highlight that property taxes generate significant revenue for local governments, and replacing them could involve alternatives like an increased sales tax or an entry tax for new residents, raising concerns about affordability and local control.

• Short-Term Relief: DeSantis has proposed a $1,000 rebate for homesteaded properties in 2025 to provide immediate relief, while long-term plans hinge on voter approval and finding sustainable revenue replacements.

Chipmaker TSMC makes $32 Billion in Q2 as AI demand soars

Taiwan Semiconductor Manufacturing Co. reported a 39% surge in second-quarter revenue, surpassing expectations, driven by robust demand for AI chips, signaling a sustained boom in artificial intelligence spending.

• Revenue Growth: TSMC's second-quarter revenue rose to approximately $31.9 billion, exceeding both analyst’s and the company's own estimates of $28.4 billion to $29.2 billion.

• AI Demand Driving Performance: The surge was fueled by strong demand for AI chips, with TSMC benefiting from orders from major clients like Nvidia and Intel, despite softness in mobile and consumer segments.

• June Performance: June revenue alone was up 27% from June 2024 but down 18% from May 2025, partly due to a strong New Taiwan dollar impacting export-oriented industries.

• Future Outlook: TSMC's CEO C.C. Wei reaffirmed a 2025 sales growth target in the mid-20% range, with expectations for AI chip revenue to more than double by year-end, as the company prepares to release full earnings on July 17.