With 15 days left to the start of the 50% rate on the importation of Brazilian products, the federal government’s next step in negotiations with the United States should be to ask the tax collection to postpone.
This is the evaluation of entrepreneurs heard by the report that attended meetings with the Executive in the Interministerial Committee created to define the Brazilian response to the tax rate established by Donald Trump.
There have been four meetings in the context of the committee. The government met with representatives of industry and national agribusiness, as well as American companies ,.
The meetings, so far, have ended with a message from the productive sector to the government: and unviable for industry and agribusiness.
The main request of national producers – both at meetings and interviews after them – is for August 1.
Entrepreneurs present two arguments to support this forecast. The first is the short term for negotiation: until August 1, the date the fare comes into force, there are only 11 business days left.
The government tries to open an official dialogue to deal with tariffs, when the tariff war began by Donald Trump and the.
. Therefore, entrepreneurs conclude that nothing indicates a change in posture from the United States, which would make any negotiation difficult to reduce the rate at this time.
With a request for postponement, the government, which is seen in an urgent situation – since the new rate is five times higher than the previous one – would gain time to dialogue and even offer commercial concessions that facilitate negotiation.
Another point indicated by the productive sector, especially agribusiness, is legal insecurity in contracts already signed. Entrepreneurs say that agreements with US clients will not be able to be fulfilled if tariffs are valid in August.
In the case of meat, for example, there are already products in ports and even ships on their way to the United States. Large agro associations even ask for a total removal of food surcharge.
Faced with the pressure of the sector, the government is already beginning to admit that the postponement is a possibility.
This Wednesday (16), the Vice President of the Republic and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin (PSB), if necessary.
“The good thing is that it is resolved in the coming days, but if there is a need to extend during negotiations, I see no problem,” said Alckmin.
Meeting between government and entrepreneurs
The federal government began last Tuesday (15), a series of meetings with representatives of the private sector to discuss alternatives and negotiation strategies with the United States.
Planalto’s idea is to take advantage of the interlocution and access of Brazilian entrepreneurs with the US market to align the speech between the public and private sectors and to define the best negotiation strategy.
The vice president argues that before the government makes any decision, it is essential to hear the private sector, which has a direct connection with the US market.
