By Luciana Magalhaes, Lisandra Paraguassu, Bernardo Caram and Ana Mano SAO PAULO (Reuters) -Brazil is scrambling to avert punishing 50% U.S. tariffs in a week's time, but high level talks are stalled and U.

Brazil’s inflation edged up in early July as US President Donald Trump threatened to slap the South American nation with punishing tariffs, further complicating the consumer price outlook for the central bank.

President Trump's tariff threat against Brazil to protect his ally, former President Jair Bolsonaro, has sparked political turmoil in the South American country.