Nvidia’s New Playbook: From Chips To AI Partnerships

SAXO

Stocks

Forex

Economic

Summary:

Key points:

● Nvidia is building the full AI stack — compute, connectivity, and applications — not just hardware.

● Strategic alliances in telecom, healthcare, and enterprise AI point to a wider market footprint and a push toward long-term, recurring revenue.

● Growth prospects stay strong as the company remains central to the AI infrastructure boom, but faces margin, policy, and competition risks.

Nvidia's story keeps getting bigger. Once known mainly for its GPUs, the company is now spreading across the entire AI landscape — powering governments, telecom networks, healthcare, retail, and more. It's becoming the backbone of the global AI economy.Its latest partnerships stretch across industries — from government supercomputing to telecom networks, pharmaceuticals, retail, and quantum computing. Together, they paint a picture of Nvidia building the digital backbone of the AI economy.

What areas is Nvidia expanding into?

1. U.S. government (DOE × Nvidia)

Nvidia announced seven new AI supercomputers for the U.S. Department of Energy, developed with Oracle and hosted at Argonne and Los Alamos. The projects will advance research and national security, with estimated AI chip bookings around $500 billion. This cements Nvidia's leadership in sovereign and public-sector AI infrastructure.

2. Telecom and 6G (Nokia × Nvidia)

In a surprise move, Nvidia is investing $1 billion for a 2.9% stake in Nokia, co-developing AI-native 6G networks and next-generation radio access (AI-RAN) systems. The two aim to combine Nvidia's AI compute stack with Nokia's telecom hardware.This partnership could help U.S. carriers modernize networks, with Nvidia effectively embedding itself into the "nervous system" of future connectivity.

3. Enterprise AI (Palantir × Nvidia, CrowdStrike × Nvidia)

Nvidia is deepening its push into enterprise software:

● With Palantir, it will merge data analytics with AI models to help companies deploy and scale AI in critical operations.

● With CrowdStrike, Nvidia is powering real-time, AI-driven cybersecurity agents that continuously learn and adapt.

These deals expand Nvidia's ecosystem beyond hardware — into the software and security layers of corporate AI adoption.

4. Healthcare (Eli Lilly × Nvidia)

Nvidia and Eli Lilly are collaborating to accelerate drug discovery using generative AI. The partnership will apply Nvidia's BioNeMo platform to analyze molecular data and design potential drug candidates faster — a move that could shorten R&D timelines across pharma.It reinforces how Nvidia's compute power is being applied in life sciences — an area with both social impact and long-term commercial potential.

5. Retail (Lowe's × Nvidia)

Nvidia is working with Lowe's to bring AI into physical retail operations. Using Nvidia's Omniverse and computer-vision tools, Lowe's aims to automate inventory management and improve in-store analytics.It's a glimpse into how AI will move from data centers into day-to-day business operations.

6. Quantum computing (NVQLink × Nvidia)

Nvidia also launched NVQLink, a system connecting quantum processors with GPUs and CPUs. Seventeen quantum companies and nine research labs are part of the collaboration — putting Nvidia at the center of the next frontier in high-performance computing.

Why it matters

● Broader demand base: Nvidia is expanding beyond Big Tech cloud providers into governments, telecoms, healthcare, and retail — creating more stable and diversified revenue streams.

● Ecosystem advantage: Its growing software and services platforms — including NeMo, Omniverse, and BioNeMo — keep customers tied to Nvidia's ecosystem and open up recurring income opportunities.

● AI adoption tailwind: As AI becomes a core part of business and government infrastructure globally, Nvidia remains at the epicenter of the AI hardware and infrastructure wave.

● Multiple growth engines: The company now has several long-term drivers — spanning data centers, telecom and 6G networks, robotics, and edge computing — offering structural growth beyond short-term chip cycles.

● Strategic positioning: Nvidia is embedding itself in critical infrastructure — from national labs to next-generation networks — making it indispensable to AI adoption worldwide.

Geopolitics remain a swing factor

With Donald Trump and Xi Jinping scheduled to meet in South Korea at the tail end of the APEC 2025 Summit, investors are watching carefully for any shifts in U.S. export policy on high-end AI chips. The question is whether the U.S. will ease, tighten or redefine the rules governing sales of chips such as Nvidia's Blackwell series to China. Even the possibility of a "China-safe" variant of the chip could alter the size of Nvidia's total addressable market (TAM) and its pricing power.

But the significance goes beyond just that bilateral meeting. On the sidelines of the summit, Nvidia's leadership is expected to meet with major Korean conglomerates—including Samsung Electronics, Hyundai Motor Group and othersThese meetings could signal broader regional alignment on semiconductor supply chains and AI infrastructure investment. If Korea's chip, memory and auto players agree to U.S.-led frameworks, that may strengthen Nvidia's role; conversely, any pivot toward China or supply-chain decoupling would raise pressure on margins and market access.

Risks to watch

● Margin pressure: Rising costs and intense investment in new technologies could squeeze profitability. As competition grows and major clients negotiate harder, Nvidia's pricing power may start to fade.

● Regulatory uncertainty: The policy outlook — especially between the U.S. and China — remains fluid. Changes in export controls or sanctions could limit Nvidia's ability to sell advanced AI chips in key markets.

● Execution challenges: Many of Nvidia's new initiatives, from telecom and robotics to quantum computing, are long-term bets. Delays or slower adoption could weigh on earnings momentum.

● Cyclical AI spending: AI infrastructure investment tends to move in waves. After major build-out phases, spending pauses or "digestion" periods often follow, leading to near-term revenue swings.

● Intensifying competition: Rivals like AMD, Qualcomm, and emerging AI-chip startups are quickly catching up. Nvidia may need to balance market share with margin protection as the field broadens.

Investment view

Nvidia's transformation from a chipmaker to a full-stack AI platform puts it in a class of its own. Its partnerships now touch nearly every major growth area — data centers, telecom, healthcare, robotics, and enterprise software. The company remains the core enabler of the global AI build-out, and its upside potential is still meaningful.

But investors should also stay realistic: margin pressure, policy risks, and market cycles are real. Nvidia remains the undisputed leader of the AI infrastructure wave — but leadership comes with higher expectations and thinner room for error.

Source: SAXO

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Winkelmann

Forex

Political

Economic

A coronavirus carrying a genetic feature found in the viruses that cause Covid-19 and MERS has been discovered in bats in Brazil, expanding the known global range of batborne viruses capable of jumping into other species.The virus, named BRZ batCoV, was detected in Pteronotus parnellii — a small insect-eating "mustached" bat common across Latin America. The samples were collected in the states of Maranhao and Sao Paulo.

The study, released Monday as a preprint ahead of peer review and publication, shows the virus belongs to the betacoronavirus family, which includes SARS-CoV-2, MERS-CoV and the original SARS virus. Genetic sequencing revealed a short stretch of the virus's spike protein that can be cut by enzymes in animal and human cells — a feature that helps some coronaviruses enter those cells more easily.Such furin cleavage sites haven't previously been reported in bat coronaviruses from the Americas, suggesting these traits may have evolved independently in South American bat populations.

The finding is notable because a similar cleavage site in SARS-CoV-2's spike protein became a lightning rod during the pandemic, when some claimed it was evidence of laboratory manipulation. Subsequent research has shown that comparable sites occur naturally in several other coronaviruses — including this newly detected Brazilian strain — indicating such features can arise through ordinary viral evolution.The research, led by Kosuke Takada and Tokiko Watanabe at the University of Osaka, with collaborators from Sao Paulo University and the University of Madison-Wisconsin and other international laboratories, found the virus to be related to MERS-like coronaviruses but distinct enough to form its own lineage. Related viruses have been identified in bats across Asia, Africa and the Middle East, but not in the Western Hemisphere until now.

There's no evidence the newly discovered virus infects humans. The finding underscores the importance of wildlife surveillance programs that track the diversity of coronaviruses before they have a chance to spill over into people.

Source: Bloomberg Europe

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

Inflation Surprises to the Upside Amid Broader Price Pressures

Australia’s consumer price index rose by 3.2% in the third quarter of 2025 compared to the same period last year, marking the most significant inflationary spike since mid-2024. This reading exceeded both the previous quarter’s 2.1% increase and the 3.0% forecast by Reuters-polled economists. It also pushed inflation back above the Reserve Bank of Australia’s 2%–3% target band for the first time in over a year.

The Australian Bureau of Statistics attributed the surge to sharp cost increases in housing, recreation and culture, and transport services. These categories, especially housing, have consistently contributed to Australia’s stubborn inflation, underscoring the persistence of structural cost pressures rather than merely temporary shocks.

Core Inflation Signals Strengthening Underlying Price Dynamics

The trimmed mean inflation, which excludes volatile price movements and is closely monitored by the RBA, also rose to 3.0%, up from 2.7% in the previous quarter. This reversal marks the first acceleration in core inflation since December 2022, suggesting that price growth is becoming more entrenched in the broader economy.

This shift reflects a potentially causal pattern where price persistence in essential categories such as shelter and utilities amplifies underlying inflationary pressures, limiting the central bank’s ability to normalize monetary policy without risking a resurgence in overall price momentum.

Market Response Reflects Policy Reassessment

Financial markets reacted promptly to the inflation data. The benchmark S&P/ASX 200 index dropped 0.76%, reflecting investor recalibration of interest rate expectations. Simultaneously, the Australian dollar gained 0.21% against the U.S. dollar, climbing to 0.6596, as traders priced in a more hawkish RBA stance going forward.

According to Josh Gilbert from eToro, the latest figures effectively delay any potential rate cuts and may even reignite discussions around tightening. He suggested that disinflation is clearly stalling, and persistent inflation, coupled with the potential for rising unemployment, introduces the risk of stagflation a condition where price growth persists even as economic momentum slows.

RBA Policy Outlook Faces Increasing Constraints

The Reserve Bank of Australia had previously signaled cautious optimism that inflation would continue easing toward the midpoint of its target band. However, its September policy statement already warned that third-quarter figures might exceed expectations due to unyielding price growth in housing and market services.

Governor Michelle Bullock had acknowledged last month that inflation in these areas was “a little higher than we were expecting,” although she maintained that it did not point to runaway inflation. Nonetheless, consistent upside surprises including July’s 2.8%, August’s 3.0%, and now September’s 3.5% monthly headline CPI paint a picture of steadily rising inflationary momentum, rather than transient volatility.

Economic Growth Buys Time But Does Not Alleviate Price Concerns

Interestingly, Australia’s economy has shown resilience in terms of output. Second-quarter GDP growth came in at 1.8% year-over-year, outpacing both the 1.6% estimate and the previous quarter’s 1.3%. This may provide the RBA with some breathing room to keep rates elevated for longer without immediately derailing economic activity.

However, the apparent disconnect between output strength and inflation moderation may indicate a transition toward a more demand-inelastic inflation regime. That is, even as real activity stabilizes or grows modestly, structural and supply-side constraints are continuing to exert upward pressure on prices.

The unexpected surge in Australia’s inflation rate to 3.2% complicates the Reserve Bank’s path forward. While strong economic growth offers a temporary cushion, rising core inflation and persistent pressure in housing and services point to underlying causes that may require more aggressive monetary intervention. As markets retreat from expectations of near-term easing, policymakers will need to navigate a delicate balancing act between taming inflation and preserving the post-pandemic recovery. The specter of stagflation once considered unlikely now looms closer, adding another layer of uncertainty to the RBA’s decision-making landscape.

Source: CNBC

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

MarketPulse by OANDA Group

Commodity

Forex

Political

Economic

Gold prices saw a sharp decline in early trade today breaching the $3900/oz handle and touching a three-week low. The selloff this week is down to a host of factors but the main one being increasing hopes of a US-China trade deal which has led to a risk-on environment.There is also potential profit taking, a slightly stronger US Dollar and the upcoming Federal Reserve meeting which could all be contributing towards Gold's recent pullback.The precious metal has risen around 1.5% since the European session lows to trade around the $3960/oz handle at the time of writing. The question now is, can bulls breach the $4000/oz handle once more?

Looking Ahead – Trump-Xi Meeting, FOMC Meeting

Two big events are coming up that will affect the markets, the US Dollar and Gold prices.

First, financial markets are preparing for the Federal Reserve's (Fed) announcement on Wednesday, where they are widely expected to cut the benchmark interest rate by 0.25%. The main focus for investors will be on what the Fed says about future rate cuts, as traders have already assumed there will be one more cut in December and one more in 2026.

Second, everyone is watching the expected meeting between US President Donald Trump and Chinese President Xi Jinping later this week, hoping the leaders will find a way to stop the trade tensions from getting worse and iron out a trade deal between the world's two largest economies.

Gold (XAU/USD) Price Bounces 1.5% From Three-Week Lows. Will Bulls Reclaim The $4000/oz Handle?_1

For all market-moving economic releases and events, see the MarketPulse Economic Calendar.

Technical Analysis – Gold (XAU/USD)

From a technical standpoint, Gold did follow through after last weeks double top pattern, with the precious metal declining a lot further with very little pullback.The precious metal has broken below the 50 and 100-day MAs. This is the first time Gold trades below both of them since August 22, 2025 on the four-hour timeframe.

Gold has bounced aggressively off key support around the 3900 mark.

Immediate resistance rests at the 3975 handle before the 4000 handle comes back into focus.Personally i would prefer a candle close above the 4013 handle which would be an indication that structure has changed. This would provide me with piece of mind regarding bullish interest in the precious metal remaining strong.A break below the 3900 handle though opens up a retest of the 3875 handle before the 3850 and 3800 handles come into focus.

Gold (XAU/USD) Four-Hour Chart, October 28, 2025

Gold (XAU/USD) Price Bounces 1.5% From Three-Week Lows. Will Bulls Reclaim The $4000/oz Handle?_2

Source: TradingView

Client Sentiment Data – XAU/USD

Looking at OANDA client sentiment data and market participants are Long on Gold with 75% of traders net-long. I prefer to take a contrarian view toward crowd sentiment and thus the fact that the majority of traders are net-long suggests that Gold prices could continue to slide in the near-term.

Source: MarketPulse by OANDA Group

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

Artificial Intelligence Euphoria Pushes Valuations and Market Highs

Artificial intelligence remains the dominant narrative across global capital markets, igniting both exuberance and unease as valuations soar to historic levels. On Tuesday, major U.S. stock indexes, including the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average, all posted new intraday highs, fueled predominantly by AI-linked technology stocks. Nvidia rose nearly 5% and Microsoft gained 2%, contributing significantly to the rally.

The upward momentum reflects investor optimism that the current AI expansion wave is not merely speculative but underpinned by evolving business models, deeper integration of AI technologies across sectors, and bold financial commitments by industry leaders. However, this continued enthusiasm exists alongside rising concerns that valuations may be advancing faster than earnings or proven long-term utility.

Strategic Investment and Cross-Sector Alliances Reinforce AI Optimism

One of the key developments propelling sentiment was Nvidia’s surprise announcement of a $1 billion equity investment in Nokia. Though Nokia is now far removed from its mobile phone legacy, the capital injection is aimed at accelerating its ambitions in artificial intelligence and next-generation 6G infrastructure. The partnership was received enthusiastically by the market, pushing Nokia’s shares up 22% following the announcement.

This collaboration also includes a joint initiative to develop 6G cellular systems, signaling that leading chipmakers like Nvidia are not just betting on data centers but expanding their AI ecosystem into telecommunications infrastructure. The cause-effect relationship is evident: by investing in critical enablers of connectivity and edge computing, Nvidia is directly enhancing the environment in which its GPUs and AI solutions will operate.

OpenAI Restructures, Cementing Microsoft’s Position in AI Leadership

OpenAI’s internal restructuring finalized on Tuesday, solidifying a bifurcated model in which its nonprofit arm now controls 26% of its for-profit counterpart. Microsoft, which holds a 27% stake in the commercial entity, is poised to benefit immensely if OpenAI’s technologies evolve into scalable, revenue-producing platforms. Its $13 billion investment is now valued at $135 billion, marking a more than tenfold paper return, contingent on OpenAI's commercial viability.

This restructuring brings governance clarity but also intensifies speculation on future monetization. With PayPal announcing plans to integrate services within ChatGPT, the AI ecosystem is expanding beyond core development and into fintech applications. These cross-industry integrations suggest more than correlation, they imply causality between strategic equity positioning and future dominance in AI commerce.

Memory Market Booms as AI Spurs Hardware Demand

SK Hynix, the world’s second-largest memory chip manufacturer and a primary supplier to Nvidia, reported a staggering 62% year-over-year increase in third-quarter operating profit, reaching 11.38 trillion won ($7.94 billion). This record performance is attributed directly to AI-fueled demand for high-bandwidth memory (HBM), a critical component in training and deploying large-scale AI models.

Unlike many AI-linked firms that promise future returns, SK Hynix’s results demonstrate an immediate and quantifiable link between AI expansion and hardware consumption. This establishes a causal relationship where AI’s infrastructural needs directly influence chipmaker profitability, reinforcing the underlying industrial demand driving the current investment cycle.

Record Valuations Among Tech Giants Signal Market Transformation

Apple and Microsoft both surpassed the $4 trillion market capitalization mark during Tuesday’s trading session, though Apple eventually closed slightly below it. This development reflects not just speculative optimism but the scale at which market participants are pricing in AI's long-term potential. These valuations place Apple and Microsoft in a league beyond traditional tech leadership, effectively recasting them as central infrastructure players in the AI-driven economy.

Cathie Wood of Ark Invest contextualized this shift as the beginning of a "technology revolution," implying that these price surges are not end-stage bubbles but early indicators of a prolonged transformation. Still, such a conclusion remains speculative until profitability consistently materializes across more segments of the AI value chain.

Contrasting Trends in Commodities and Monetary Policy

While tech equities soared, gold markets moved in the opposite direction. Gold entered correction territory, with spot and futures prices falling below $4,000 after briefly breaching $4,300 last week. Analysts are now reassessing gold’s role as a safe-haven asset in an environment dominated by risk-on sentiment and technological disruption.

Simultaneously, the Federal Reserve is poised to deliver a second consecutive rate cut, reducing the federal funds rate by 25 basis points to a 4.00–4.25% range. This anticipated move further amplifies investor risk tolerance, supporting asset classes like equities while softening the appeal of traditional hedges like gold.

The AI investment boom continues to accelerate, powered by tangible financial results, high-stakes equity alliances, and the sustained appetite of both institutional and retail investors. While warnings of an overheating sector persist, recent earnings from hardware suppliers and strategic restructuring within AI pioneers provide fundamental justification for optimism. However, distinguishing between correlations and durable business causality will be essential in determining whether this is a historic revolution or an overextended bubble in disguise. For now, markets are betting on the former and doing so with record-setting conviction.

Source: CNBC

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

Stocks

Market Milestone Amid Strategic Alliances

The Nikkei 225 soared over 2% to reach 51,247.33 points on Wednesday, marking its first breach of the 51,000 threshold. This surge reflects increased investor confidence driven by two converging forces: an encouraging shift in U.S.-Japan trade relations and anticipations of looser monetary policy from the U.S. central bank. The rally followed U.S. President Donald Trump’s historic visit to Tokyo and the announcement of a new bilateral framework on rare earth cooperation with Japan’s newly appointed Prime Minister Sanae Takaichi.

The agreement between the two allies signals a deeper alignment in strategic industries, particularly critical minerals, and comes as both economies aim to strengthen their supply chain resilience. This is interpreted not only as a trade development but also as a geopolitical gesture reinforcing U.S.-Japan partnership amid global realignments.

Takaichi’s Policy Direction and Market Interpretation

The market reaction is partially shaped by investor assumptions about Takaichi’s economic and foreign policy posture. As noted by FitchSolutions firm GeoQuant, her leadership is expected to reinforce liberal economic measures, socially conservative values, and stronger national defense strategies. These expectations introduce speculative projections for Japan’s fiscal and structural reform landscape, potentially making the Japanese equities market more attractive in the long run.

However, the relationship between Takaichi’s policy leanings and the market’s performance at this point remains correlative. While markets may interpret her anticipated direction as pro-growth or reform-oriented, no formal fiscal package or legislation has yet been implemented.

Federal Reserve Expectations Fuel Momentum

A second key factor behind the equity rally is the market’s near certainty that the Federal Open Market Committee will execute another 25-basis point rate cut. Currently, markets are pricing in nearly a 100% probability of a move that would bring the U.S. federal funds rate into a range of 3.75% to 4.00%. This expectation follows September’s cut and is in response to signals of a slowdown in U.S. economic growth.

Investor Louis Navellier emphasized that dovish commentary from Fed Chair Jerome Powell could escalate market momentum, suggesting a causal link between central bank communication and trading behavior. The easing cycle’s effect is indirect but influential, lowering borrowing costs and stimulating demand in riskier asset classes such as equities.

Broader Asia-Pacific Market Performance

While Japan led gains, regional markets showed mixed responses. South Korea’s Kospi advanced 1.43%, whereas the smaller-cap Kosdaq fell slightly. China’s Shanghai Composite inched up 0.17%, and the CSI 300 rose 0.37%. Australia’s S&P/ASX 200 declined by 0.78%, following the release of unexpectedly high third-quarter inflation data (3.2%), the strongest in over a year surpassing both the prior quarter’s 2.1% and Reuters’ consensus estimate of 3%. This inflationary surprise introduces a tension between economic overheating and the Reserve Bank of Australia’s monetary stance.

The divergent responses indicate that while some regional markets benefit from global macroeconomic tailwinds, others face domestic challenges that counteract external positivity. In Australia’s case, rising inflation may delay anticipated rate cuts or even prompt more hawkish policies, moderating equity enthusiasm.

Wall Street Closes Higher with Historic Intraday Highs

Overnight, U.S. indices also posted gains. The S&P 500 rose 0.23% to 6,890.89, breaching 6,900 intraday for the first time. The Nasdaq Composite jumped 0.80% to close at 23,827.49, while the Dow Jones Industrial Average climbed 0.34% to 47,706.37. All three indices recorded new intraday highs, signaling sustained bullish sentiment in the U.S. tech and industrial sectors.

While the movement of U.S. stocks reflects domestic dynamics, including earnings momentum and policy expectations, it also reinforces global optimism in equity markets and serves as a benchmark for investor sentiment worldwide.

The record-breaking performance of Japan’s Nikkei 225 is a product of intersecting developments: renewed geopolitical alignment with the U.S., optimistic pricing of future monetary easing by the Federal Reserve, and investor speculation about the pro-market tendencies of Japan’s new leadership. While not all regional indices mirrored this optimism, the broader picture suggests that synchronized global optimism when coupled with strategic diplomacy can drive equity markets to new milestones. However, distinguishing causality from correlation remains essential in anticipating whether these rallies have firm policy foundations or are fueled primarily by sentiment.

Source: CNBC

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Justin

Forex

Political

Economic

The Republican-led US Senate passed legislation on Tuesday that would overturn US President Donald Trump's tariffs against Brazil by terminating the national emergency he declared in July, in retaliation for Brazil's prosecution of its former president Jair Bolsonaro for an alleged coup attempt.In the first of three tariff bills expected in the Senate this week, lawmakers approved the Brazil measure 52-48, with five Republicans crossing partisan lines to back the legislation.

Legislative measures to terminate Trump's tariffs on Canada and his tariffs against other countries around the globe are expected to come up for votes later this week.The vote sent the Brazil measure on to the Republican-controlled US House of Representatives, where it is expected to be shelved. House Republicans have repeatedly voted to block action on legislation to end Trump's tariffs.The Senate action came while Trump is on a five-day trip to Malaysia, Japan and South Korea and is scheduled to meet with China's Xi Jinping for trade talks on Thursday.

Senate Democrats, who contend that Trump has used bogus emergency declarations to justify some of his tariffs, have pledged to force repeated votes to undo the trade actions as prices on affected goods and commodities rise, hurting American consumers."People are suffering. They're paying more for food, more for clothes, more for healthcare, more for energy, more for building supplies, because of President Trump's tariff policy," Senator Tim Kaine, the Virginia Democrat who authored the resolution, said on the Senate floor.

His measure was backed by Republican Senators Susan Collins, Mitch McConnell, Lisa Murkowski, Rand Paul and Thom Tillis.Other Republicans warned that the bill could undermine Trump's efforts to negotiate new trade deals with other countries.Brazilian officials have cited a US$410 billion (RM1.71 trillion) US trade surplus with Brazil over 15 years. But Trump's executive order accused the South American country of threatening US national security, foreign policy and the US economy, as well as "politically persecuting" Bolsonaro.

Bolsonaro has been convicted of taking part in an armed criminal organisation, attempting to violently abolish democracy and organising a coup, and has been sentenced to 27 years in prison. He has repeatedly denied any wrongdoing and appealed his prison sentence to Brazil's Supreme Court.Trump raised tariffs on imports of most Brazilian goods to 50% and sanctioned the Brazilian Supreme Court justice overseeing the Bolsonaro case in July. The judge had levied search warrants and restraining orders against Bolsonaro over allegations that he courted Trump's interference in his criminal case, in which he was accused of plotting to stop President Luiz Inacio Lula da Silva from taking office in 2023.

Trump said last week that he would consider reducing tariffs on Brazil, under the right circumstances.In April, the Senate passed legislation to end Trump's tariffs against Canada but rejected another measure to rein in his global tariffs. Both were voted down in the House.