Sectors of the national economy that will be affected by the 50% surcharge about Brazilian products from this Wednesday (6) articulate the inclusion of their products in a new exception list that is exempt or reduce the new applied rate.
In the executive order that officialized the tariff, the president of the United States, Donald Trump, from the list of products that would be affected.
The executive order signed by the White House brings a list with about 700 products that were left out of the surcharge. These include planes, pulp, orange juice, oil and iron ore.
Already products such as coffee, beef, civil engineering equipment, sugars and wood will be overwhelmed. The 50% rate will reach 35.9% of Brazil’s exporting agenda to the US.
The focus of these sectors is currently trying to enter a possible new list of exceptions. Entrepreneurs have already started this movement, acting with both the Brazilian government and in articulations with representatives of the private sector of the United States.
The idea is to convince Americans that there is commercial logic in the requests, arguing that markets are complementary and that taxation can make products cost in the US market itself.
Most associations representing the productive sector claim to see the fare with “great concern.”
ABIEC (Brazilian Association of Meat Exporting Industries), for example, states that total taxation will reach 76%, compromising the economic viability of exports to the US.
“The entity is in dialogue with US importers and collaborates with the federal government in search of a negotiated solution,” the association says in a statement.
Abipesca (Brazilian Fishing Industry Association) states that the US market represents 70% of Brazilian fish exports and more than US $ 240 million.
“Considering the importance of the US market for the sector, it is essential to prioritize negotiation and seek economic solutions that benefit Brazil, ensuring the preservation of thousands of jobs and the maintenance of the sector’s economic stability,” says the association.
The cocoaiculture sector and an increase in idleness in the industry.
“With the new tariff scenario, the US market, the second main destination for Brazilian derivatives and responsible for 18% of exports in the sector, becomes economically unfeasible,” says the AIPC (National Association of Cocoa Processing Industries).
The association also reinforces that it believes in “dialogue” as the way for the revocation of the tariff.
“AIPC reinforces its commitment to technical and purposeful work with the governments of Brazil and the United States, in search of solutions that preserve predictability, sustainability of the production chain and the generation of value in national agribusiness,” he says.
The coffee sector also demonstrates ‘great concern’ with the surcharge, but the possibility of entering a list of exceptions.
This logic is shared by members of the federal government.
Negotiators heard by CNN They evaluate that Trump’s initial retreat, which exempted 45% of the items exported by Brazil, indicates that there is still room for negotiation within the American commercial logic.
Following this reading, coffee is considered by the government the product with the greatest potential to obtain a different treatment. The United States does not have a significant production of commodity, with restricted cultivation to Hawaii, California and Puerto Rico.
The private sector of Brazil estimates that about 30% of coffee consumed in the US is Brazilian. For the government, it is unlikely that the product will be fully exempt, but it is expected that the applied rate is below 50% – between 20% and 30%.
Beef meat, on the other hand, in the assessment of technicians, although it is also at the center of negotiations for the next steps.
