Otaviano Canuto says that the measures imposed by the US President can fragment the markets
The former World Bank Vice President, Otavian Canuto, said it is matter of time until Brazil is hit by Donald Trump’s (Republican) tariffs. The US president is in countries as part of the “America first” policy, benefiting US producers.
“It’s a mere matter of time. Trump will announce something about the European Union. It is inevitable that he is not alone in it. Brazil will be affected ”said Canuto in an interview with the newspaper The globe This Thursday (3.FEV.2025).
The question is how tariffs will be applied to Brazil, according to the economist. Trump can decide for a general rate or for specific measures. “Our steel and aluminum staff has to be worried now”completed.
For Canuto, Brazil has two options to respond to Trump’s rates: to follow China and resort to the WTO (World Trade Organization) or announce a retaliation.
“I imagine that the Brazilian government is doing or has already done your homework to check how you can throw tariffs back”said the former vice president.
Tariff impositions can force affected countries to seek other business partners, increasing the fragmentation of markets
“Europe has announced interest in deepening agreements with Mexico. Just as finally it seems to have a deal with Mercosur. The architecture will change. Trump’s movement against neighbors, friends, really goes against any logic of regional organized fragmentation and so on ”said Canuto.
