Vice President states that Brazilian executive only hears the private sector and denies any formal request to the United States
Vice President Geraldo Alckmin (PSB) denied, on Monday (14), that the Brazilian government has made any official request to the US government to extend or reduce the 50% rate of Brazilian products, announced last week by US President Donald Trump. The measure must come into force next August 1st.
Alckmin, who also runs the Ministry of Development, Industry, Commerce and Services (MDIC), said that the federal executive is listening to the private sector and organizing the next steps, but ruled out any formal initiative with the White House so far. “The government has not requested any extension of time or made any proposal about the rate, about percentage. What we are doing is listening to the most involved sectors, for the private sector to also participate and mobilize with its counterparts and partners in the United States,” said the vice president.
Committee with businessmen starts this Tuesday
Alckmin’s statement takes place on the eve of the first meeting of the Committee with entrepreneurs, created by determination of President Luiz Inacio Lula da Silva (PT). The group will gather representatives of the government and private initiative to evaluate the impacts of the measure and define strategies for response to US taxation.
It is expected that the committee will collect suggestions from the productive sector, especially agribusiness and export -based industry, which can be directly affected by the tariff.
Understand the case
Last Wednesday (9), President Donald Trump sent an official letter to President Lula, in which he announced the imposition of a 50% rate on all Brazilian products exported to the United States. The justification, according to Trump, is a response to alleged attacks from Brazil to the freedom of expression of American companies and the treatment given to former President Jair Bolsonaro in the context of Brazilian justice.
Trump also stated that similar measures could be expanded if Brazil reacts to tariff elevation, and ordered the opening of an investigation against the country based on section 301 of the American commercial legislation.
Open scenario
The tariff, if implemented, may significantly affect sectors such as agribusiness, aeronautical industry, metallurgy and footwear. The Parliamentary Front of Agriculture (FPA) has already shown concern and requested firm diplomacy from the Brazilian government, while governing deputies suggest the application of the reciprocity law, which allows tariff retaliation.
Meanwhile, Embraer has already registered 3.6% in its shares after the announcement of the measure. The company can be partially spared due to the production of some aircraft in US territory, which may guarantee exceptions to new taxation.
