The United States confirmed, on Wednesday night (15), the application of a 25% tariff on imports of Brazilian products. The measure was taken by the local government after an investigation by the Office of the US Trade Representative that accuses Brazil of “unfair practices” to justify punishing national producers.
Although the Palácio do Planalto insisted on a negotiation table with US bodies over the last year, the hostile outcome was already predicted by Brazilian diplomacy. The Brazilian government must wait for the official announcement and the list of taxed products to take a position.
The size of the blow
The impact of the measure should be felt most by Brazilian industry, according to a survey by the National Confederation of Industry (CNI). According to the entity, the tariff could affect around 4 thousand products produced in Brazil, directly threatening an amount of US$ 14.9 billion (around R$ 80 billion) in exports to the US market.
Since last year, the government of President Luiz Inácio Lula da Silva (PT) has treated tariffs as a political and not an economic issue. The PT member met this Wednesday morning with the diplomatic corps and international affairs advisors to outline the Brazilian counteroffensive in the face of the commercial attack.
The Trump administration’s justification that the rates serve to “balance the bilateral balance” does not hold up in the face of the reality of the data. Historically, the trade relationship between the two countries is largely favorable to the United States, which accumulates consecutive surpluses at the expense of the Brazilian market.
Source: www.brasildefato.com.br
