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.

Brazilian President Luiz Inácio Lula da Silva says that his government has not been successful in trying to negotiate the 50% tariff on Brazilian imports that U.S.