After Trump’s announcement, governors advocate use of the US reciprocity law

by Andrea
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Deputies combined with the Planalto want commercial retaliation after US president imposes 50% tariff on Brazilian products

EFE/EPA/LUDOVIC MARIN / POOL
Donald Trump, announced on Wednesday (9) the imposition of a 50% rate on all Brazilian products exported to the US market

After the president of the, announced on Wednesday (9) the imposition of a 50% rate on all Brazilian products exported to the US market, government parliamentarians reacted and began to defend the immediate use of reciprocity law as an answer.

The current legislation authorizes the Brazilian government to adopt trade measures against countries that impose unilateral barriers to national exports. For the allies of the Planalto Palace, Brazil must act firmly in the face of what they classify as an “affront” to the country’s sovereignty and economic interests.

“We gave the government autonomy [com a Lei da Reciprocidade]. No need to approve anything here, the law is given and is done. The government, of course, will apply because it is a haughty government, ”said Mrs Jandira Feghali (PCdoB-RJ), commenting on the repercussion of Trump’s letter to President Luiz Inacio Lula da Silva.

The PT leader in the House, Deputy Lindbergh Farias (PT-RJ), also defended the use of the measure, but stressed that the decision is up to the executive. The parliamentarian reported that an emergency meeting was called with government members to discuss the Brazilian response.

Trump threatens to double tariff case brazil react

In the letter sent to Lula, Trump made it clear that any Brazilian retaliatory measure will be answered with a new tariff increase. According to him, “if Brazil decides to increase its rates, any value will be added to 50% already announced”, and may reach a total tax of 100% over Brazilian products.

The measure is justified by the US President as a direct response to the “attacks on the freedom of expression of American companies” and what he called “witches hunt” against former President Jair Bolsonaro. Trump hardly criticized for alleged censorship orders to US digital platforms, classifying decisions as “secret and illegal.”

Commercial and diplomatic dispute

In addition to political criticism, Trump argued that the business relationship between the two countries is not balanced. According to him, Brazil imposes tariff and non-tariff barriers that harm US companies, generating an alleged commercial deficit that threatens the economy and national security of the US.

“The 50% number is much less than necessary to ensure equal conditions,” wrote the US president. He also ordered US commercial representative Jamieson Greer to start formal investigation based on section 301, a legal device used against countries accused of unfair business practices.

In the letter, Trump also left a door open for negotiation, stating that tariffs can be “modified, more or less, depending on our relationship with his country.”

Reaction of the Brazilian government

Still on Wednesday, President Lula has spoken on social networks, reaffirming that Brazil is a sovereign country, with independent institutions and will not accept any kind of external interference. He also denied the supposed US deficit in trade with Brazil, claiming that the US has accumulated surplus of over $ 410 billion in 15 years, according to US government data.

The Ministry of Foreign Affairs and the Ministry of Finance monitor the consequences of the case, and the application of the reciprocity law is under the analysis of the government’s economic team.

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