Dissatisfaction with tariffs about Brazil can stop in US courts

While President Lula gathers businessmen and ministers in committees to articulate the reaction to the tariffs imposed on Brazilian products by Donald Trump, analysts consulted by the newspaper The globe They indicate that US companies can call the United States court against the 50%tariff.

The use of the International Emergency Economic Powers Law (EepIn English), from 1977, by Trump can be questioned by importers of Brazilian products who feel harmed. The law allows the US president to interfere with foreign trade in an emergency, such as national security, or for political and economic protection.

Over the decades, the law has been used to control transactions (exports) and investments with countries understood as hostile, but never to impose tariffs on imports, as it is happening now.

The current use of IEEPA by Trump, indiscriminately, has generated discomfort for businessmen and politicians in their country. States governed by Democratic politicians dispute the use of the law by the president.

California governor Gavin Newsom has already contested the Trump government’s authority to impose tariffs, considered illegal.

Read more: Tariff’s tariff war shakes the US economy and generates revolt in 12 states

The assessment is that Trump uses the International Emergency Economic Powers Law to not have to impose tariffs on the US Congress. Even more serious is the understanding that the President misrepresents legislation by using it against countries where trade and political relations are considered normal.

In the case of Brazil, the taxed products that will have great impact on exports are coffee, orange juice and beef. Next to these, fish and fruits are treated as a priority of the Brazilian government to find alternative markets or to have faster negotiation before the 50% rate expected to be entry into force for August 1.

The USA, it will not be easy to replace these products. Thus, Trump may be hiring dissatisfaction beyond his importers compatriots, when Brazilian products are missing on supermarket shelves or are much more expensive.

US courts

In early April the US International Court of Commerce understood that Trump exceeded the powers granted by the law. The US government appealed and the decision is suspended until July 31. Until then the Federal Appeal Court listens to the parties.

50% tariffs on the importation of Brazilian products draw attention, because, unlike the relationship with other countries, the US has commercial surplus with Brazil. This means that in 16 years the US has sold more to the country than they bought Brazilian products.

This should be the main argument of possible contestations in justice. But Trump’s offensive against Brazil is so unjustifiable in economic terms (leaving only the ideological agenda, in favor of Bolsonaro and Big Techs) that Ulrike Hoffmann-Burchardi, director of investment for Swiss bank UBS, assesses that the 50% rate “hardly” will be permanent.

Read more: US Press questions tariffs and provides discharge from inflation

Already Renê Medrado, from Pinheiro Neto Advogados, says that the argument that the US has surplus and Brazil deficit in commercial relationship is important but not determining. In your view, it all depends on how importers of Brazilian products will react, organize and present a joint contestation that strengthens your position.

For Welber Barral, former Secretary of Foreign Trade, and José Augusto de Castro, president of the Brazilian Foreign Trade Association (AEB), the Brazilian government and exporters should be left out of lawsuits and act for negotiation, leaving contestations in the courts for Americans.