On 18 August, Brazil’s Supreme Court ruled that foreign laws, decrees, and executive orders, including sanctions, are not valid within the country’s borders unless approved by a Brazilian court. The decision follows a US move to sanction Brazilian Supreme Court Justice Alexandre de Moraes under the Magnitsky Act. The US Treasury Department maintains that its sanctions remain in effect and that non-US entities that transact with Moraes could face consequences. The ruling intensifies a diplomatic and trade dispute between Brazil and the US, sparked by the ongoing trial of former president Jair Bolsonaro. This legal standoff creates uncertainty for financial institutions and foreign businesses operating in Brazil.