Last week, Brazil slapped on a 30 percentage point increase in import tariffs of automobiles (the Mercosur trade bloc and Mexico are exempted). A major objective of this tariff is to slow surging imports from China.

For China, it means their customer is struggling. In response, it’s trying to use the possibility of injecting cash in Europe to gain trade and investment regulation concessions.

Earlier this month, Brazil enacted important tariffs on certain steel products from China.

China is the largest trade partner of Brazil, which both heavily imports from and exports to China.

China’s biggest trade partner is the European Union.

Recently, the Eurozone has been hammered by its sovereign debt problems, which are threatening its entire banking system. Its economy is also dragged by austerity measures.