Government will work to reverse US taxation, says Alckmin

The federal government will work to reverse the imposition of commercial tariffs on exports to to the announced on Wednesday (9) by President Donald Trump. “We are going to work to reverse this, because it has no sense of this tariff. It even hurts the US consumer. We understand that it is inadequate, it is not justified. ”, Said the Vice President of the Republic and Minister of Development, Industry and Commerce, Geraldo Alckmin, after the inauguration of the new Viaduct of Francisco Morato, in São Paulo, this Sunday (13).

According to Alckmin, the government will meet in the coming days with the private sector, and is also being analyzed the application of the economic reciprocity law, sanctioned in April, which establishes criteria for the suspension of commercial concessions, investments and obligations related to intellectual property rights, in response to unilateral measures adopted by country or economic bloc that negatively impact Brazilian international competitiveness.

“The United States have with us surplus in the trade balance of both services and goods. Brazil is no problem for the United States. The United States has a deficit in its balance. And Brazil and the United States have a productive integration. We have 200 years of friendship with the United States. So it is not justified and the economic world needs stability and predictability,” said Alckmin.

The US leader announced a 50% rate on all imported products from Brazilians. The information was made through a letter to President Luiz Inacio Lula da Silva. The rates are valid from August 1st. In the document, Trump justifies the measure citing former President Jair Bolsonaro, who is a defendant in the Supreme Court (STF) for attempted coup. The US President also highlighted orders from the STF issued against supporters of the former Brazilian president who holds residence in the United States. Trump quotes alleged “insidious attacks from Brazil against free elections and the fundamental violation of the freedom of expression of Americans.”

“The way Brazil has treated former President Bolsonaro, a highly respected leader around the world during his term, including the United States, is an international shame. This trial should not be taking place. It’s a witch hunt that should run out immediately!” Trump wrote.

Ipi Zero

Alckmin also remembered the beginning of the application of the Zero Industrialized Products Tax (IPI) to the sustainable car, a measure announced by President Luiz Inacio Lula da Silva last week, which removes the value of entry cars, ie it makes them cheaper. “This can reduce the price of the entrance car by $ 10,000, $ 12,000. It is an important measure that helps the population to have access to that cheapest and sustainable car, a car that does not pollute. Favor energy efficiency, the issue of sustainability and is also social,” said Alckmin.

The decree signed by President Luiz Inacio Lula da Silva on Thursday (10) covers compact vehicles produced in Brazil and with high environmental efficiency and is part of the National Program for Green Mobility and Innovation (MOVER), launched last year, aiming at decarbonization of the country’s automotive fleet through tax incentives, especially in relation to (IPI) taxes.

To be entitled to IPI Zero, the sustainable car must meet four requirements: emit less than 83 grams of carbon dioxide (CO₂) per kilometer, contain more than 80% recyclable materials, be manufactured in Brazil (steps such as welding, painting, engine manufacturing and assembly), fall into one of the compact car categories (brands entry vehicle).

*With information from Agência Brasil