Federation that represents the industry of Minas Gerais states that the measure affects 55% of exports to the US; impact of 5 to 10 years would be up to $ 110.4 billion
A (Federation of Industries of the State of Minas Gerais) estimates that Brazilian GDP (Gross Domestic Product) should lose R $ 25.8 billion with the American over Brazilian products in the short term (from 1 to 2 years). Would represent 0.22% of economic activity.
The situation is even with the list of 694 Brazilian products of 50%. In this scenario, 146,600 formal and informal jobs would be in check. This is the (PDF – 2 MB) of the survey.
US President Donald Trump (Republican Party) had announced in April one on Brazilian products. On July 30, he is a decree establishing an additional 40%fee. Thus, the rate on several Brazilian exports will reach 50% from August 6.
The federation states that approximately 55% of Brazilian exports to the US market are subject to taxation, representing US $ 22.2 billion. Coffee, beef, semimanufated iron and steel products and manufactured products are among the affected items.
Long -term
When considering a long -term effect (5 to 10 years), the possible loss in Brazilian GDP with the tariff is US $ 110.4 billion (or 0.94%). 618 thousand formal and informal jobs would be hit.
“The imposition of these tariffs, although partially softened by the exemptions, was unilateral and without negotiation with the Brazilian government. It is essential that Brazil acts diplomatically to expand the number of exempt products, preserve its competitiveness in the international market and protect national jobs and investments.”says Flávio Roscoe, president of Fiemg.
MINAS GERAIS
The mining economy would have a loss of R $ 4.7 billion (or 0.44%) in GDP and a reduction of 30,334 jobs within 2 years. From 5 to 10 years, impacts can exceed R $ 15.8 billion (or 1.49%) and 172.2 thousand jobs.
The effects would be, above all, on the sectors of steel, livestock, manufacture of wood products and shoes.
