Publication points out that impact on the Brazilian economy tends to be moderate, as about 700 products were exempt from taxation
The imposition of a 50% rate on Brazilian products by the President of the, represents more political pressure maneuver than a significant economic coup for the. The analysis is from the British magazine The Economistwhich in recent publications classified the measure as a “shocking aggression” and one of the deepest US interference in Latin America since the Cold War.
According to the magazine, Trump’s offensive, which began on August 6, seems to be directly linked to the former president’s legal situation, currently under investigation by an alleged coup attempt. To the The Economistthe use of trade as an instrument to influence internal affairs in another country is explicit in the Brazilian case.
Despite the aggressive rhetoric and the high rate, the publication points out that the direct economic impact tends to be moderate. About 700 products, including important items of the Brazilian export agenda such as aircraft, oil, pulp and orange juice, were exempt from taxation. However, sectors such as coffee, meat and fruits remain subject to whole tariff.
The analysis points out that the Brazilian economy is less vulnerable than in the past. Exports correspond to a relatively small slice of the country’s Gross Domestic Product, and the dependence on the US market has decreased considerably in the last two decades. Currently, the US absorbs 13% of foreign sales in Brazil, a significant drop compared to the 25% recorded 20 years ago. In the same period, it was consolidated as the main commercial partner, accounting for 28% of Brazilian exports.
The magazine also noted that Trump’s measure can have an unexpected political effect in Brazil. The “aggression” of the US president generated a wave of support to President Luiz Inacio da Silva, who saw his approval rates recover. Lula, in turn, reacted firmly, stating that Brazil will not be “tutelage or humiliated by an emperor”, but opted for a diplomatic response, mobilizing companies and partners in the US to press Washington.
*Report produced with the aid of AI
