Products not cultivated on US soil, such as cocoa, mango, pineapple and coffee, may be exempt from import tariffs, said the US Secretary of Commerce; 50% taxation comes into force on 1/8
United States Secretary of Commerce, Howard Lutnick, said on Tuesday (29) that products not cultivated on American soil-such as cocoa, mango, pineapple and coffee-may be exempt from import tariffs. The statement occurs on the eve of the entry into force of the new fifty percent tax imposed on all Brazilian products exported to the US. The measure begins to apply next Friday (1st).
Although not directly mentioning Brazil, Lutnick pointed out that the zero fare would be applied to products that the US does not produce internally. “The President [Trump] It has included that if you cultivate something and we do not cultivate, it can reach zero. Therefore, if we make an agreement with a country that cultivates mango or pineapple, they can enter without tariff. Coffee and cocoa would be other examples of natural resources, ”the secretary said in an interview with US station CNBC.
Direct effects on Brazil
The United States is the largest Brazilian coffee buyers – both toasted and not toasted. In June, the country imported 15.9% of non -roasted coffee sold by Brazil, totaling US $ 148.2 million. In the roasted coffee segment, which includes extracts and essences, Americans accounted for 23.4% of purchases, moving US $ 21 million.
In the cocoa sector, the US also led acquisitions in June, with 42.6% of product purchases such as butter, folder and cocoa powder – the equivalent of US $ 22.5 million. As for chocolates and other cocoa food preparations, Americans occupied the second position among buyers, behind only Argentina, with purchases at a $ 2.4 million.
Brazilian government response
Faced with the US commercial offensive, President Luiz Inacio Lula da Silva created an interministerial committee to evaluate the impacts of the new tariff and articulate answers. The group is coordinated by Vice President Geraldo Alckmin, who also heads the Ministry of Development, Industry, Commerce and Services. Since its inception, the committee has listened to representatives of affected business sectors.
Tariff context
The announcement of the tariff was made by Donald Trump on July 9, claiming that the measure would be a retaliation of the Brazilian government’s stance regarding the freedom of expression of US companies and the treatment dispensed with former President Jair Bolsonaro. Bolsonaro, who is ineligible until 2030, responds to actions in the Federal Supreme Court for attempted coup and threats to the Democratic Rule of Law. According to Trump, the processes would configure a “witch hunt” and should “end immediately.”
The imposition of the 50% rate comes into force on August 1 and could harshly affect sectors of agribusiness and Brazilian industry-unless products such as coffee, manga, cocoa and pineapple receive differentiated treatment, as indicated by the US secretary.
