Government prepares contingency plan to mitigate effects of surcharge if it is actually applied; measures include actions similar to those adopted during the pandemic, such as employment protection and support for companies
The Minister of Finance, said on Tuesday (29) that there are signs of willingness of the United States government to negotiate the 50% surcharge announced by the president about Brazilian products. The measure is expected to take effect next Friday (1st), but, according to Haddad, the deadline should not be seen as definitive. “Brazil has never abandoned the negotiation table. I believe this week there is some sign of interest in talking,” said the minister, during a green mobility event at Planalto Palace. According to him, American businessmen reported greater opening to the dialogue by the country’s authorities.
Haddad said the Brazilian government has sent two formal letters to the US since May and is awaiting a response. He highlighted the vice-president’s efforts, who had, on Monday (28), the third and longest conversation with his American counterpart. “We are doing our part to keep the channel open and respectful dialogue.” Despite the proximity of the date for the beginning of the effective date, he avoided treating the deadline as a rigid barrier. “It is not a fateful date. It can be changed by them. It can come into force and yet quickly conclude a negotiation,” he said.
The minister also stated that the government prepares a contingency plan to mitigate the effects of surcharge if it is actually applied. The measures considered include actions similar to those adopted during the pandemic, such as employment protection and business support. However, Haddad pointed out that the final decision on the plan will be up to President Luiz Inacio Lula da Silva. “We have not created this external event, but we are prepared to protect our companies and workers, and at the same time keep Brazil permanently at the negotiating table,” he said.
Asked about the tone of the relationship with the United States, he said that Brazil will not adopt a submissive stance, but also does not intend to harde the dialogue. “The Bolsonaro had a very subservient style. This is not up to Brazil. It takes liturgy and respect for the conversation to happen correctly,” he said.
The tariff was announced by Trump in a letter sent to Lula on July 9, justifying the measure for political and commercial reasons. Subsequently, the US president said the surcharge would be applied to countries with which the relationship “has not been good.” Although Brazil has not been cited directly, it is among those affected.
On Sunday (27), US Secretary of Commerce, Howard Lutnick, said the rates will come into force “without extension”. Still, Haddad said he believed the scenario could change. “It’s getting clearer to them what Brazil’s views are about some topics, which were not easy to understand before.” The head of the farm also confirmed the possibility of direct conversation between Lula and Trump, preceded by technical dealings between the two governments. “It is our role, as ministers, to oil the channels so that the conversation between presidents is worthy, respectful and represents the interests of the two peoples,” he concluded.
Published by Felipe Dantas
*Report produced with the aid of AI
