Vice President and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin, met Thursday with US Secretary of Commerce, Howard Lutnick, and US commercial representative Jamieson Greer, in a first conversation about the tariffs imposed on Brazilian exports, and agreed that new meetings will be kept in the coming days.
In what was the first high-level contact between the two countries since US President Donald Trump announced the implementation of a 25% tariff about Brazilian steel and aluminum imports, Alckmin and Americans talked for 50 minutes for video conferencing.
“The vice president considered the conversation positive and believes that, through dialogue, it will be possible to reach a good understanding of tariff policy and other issues involving the trade policy between countries,” said the vice-presidency’s office.
The intention of the Brazilian government is that the United States resume at least one quota of import without tariff, in the same system that has worked so far. The taxation of 25%is expected to take effect next week on the 12th.
A Reuters He found with sources that attended the meeting that Alckmin requested the postponement of the start of the tariff of Brazilian products. In response, Lutnick said he would lead the question to Trump.
The Brazilian government’s argument, according to a source heard by the ReutersIt is that the country has a commercial deficit with the US, being one of the few with direct exports in this situation. In Brazilian government accounts, Brazil’s deficit is around US $ 250 million, but US accounts estimate even higher results of $ 7 billion.
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The taxation of one of Brazil’s main export agenda would give an opposite signal to what Americans would like to pass. If a country that has a commercial deficit is also taxed, there would be much incentive for countries with a commercial surplus with the US to try to balance the balance, the source argues.
Brazil exported last year 4.3 million tons of steel to the US, which would represent about 48% of Brazilian product sales, according to federal government data.
The opening of a dialogue at this time also prepares a channel for the Brazilian government to discuss new measures that come out there. Trump has promised other tariffs from April 2 to countries that, in the Americans view, apply high import rates against their products. In a statement released by the White House, Brazilian ethanol is cited directly.
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There is a fear that these new measures expand Brazilian products to be taxed, on the grounds that Brazil applies high rates to equivalent US items.
In discussions, Brazil aims to show that of the ten products that the country most matters from Americans, eight have zero tariffs, and the average fare practiced is 2.73%. On the other hand, the average tariff practiced by the US for Brazilian products is 3.5%.
