A Exporting Industry Confidence in Brazil it has fallen significantly in the last two months, a consequence of tariffs Implemented by US President Donald Trump to the country.
The information was dubbed by CNI (National Confederation of Industry) this Monday (1st).
Between June and August, the Icei (Industrial entrepreneur confidence index) In the sector fell from 50.2 points to 45.6 points.
The index ranges from 0 to 100: values above 50 indicate confidence; Below, it lacks it. This means that entrepreneurs have failed to trust the sector in the last two months.
According to CNI, the wave of pessimism has evident correlation with the increase in US export tariffs ,. In June, the fall was 1.7 point; In July, 2.9 – totaling 4.6 retreat points in the period.
O Icei Generalwhich includes companies that sell only for the domestic market, has been in a negative level for eight months. Still, Icei exporter was below the domestic industry, which in August recorded 46.1 points.
“High interest rates penalize consumption within the country. But exporting companies, with the option of selling abroad, circumvented the drop in demand in the domestic market,” explained Marcelo Azevedo, CNI Economic Analysis Manager. With the tariff, this scenario has changed.
CNI also pointed out in the research a drop in the expectation rate, which measures the degree of confidence of entrepreneurs regarding the future of the economy and the business themselves in the next six months.
The indicator fell 5 points in the period: from 52.2 points to 47.2. There was also migration from optimism to pessimism.
What is happening
50% tariffs imposed on Brazilian exports. Although it includes 700 exceptions to the rule, according to estimates from the MDIC (Ministry of Development, Industry, Commerce and Services).
In response to the republican decision last week, President Luiz Inacio Lula da Silva (PT) against the United States.
She for the adoption of measures in response to barriers imposed on Brazilian products and interests.
CNI considered that and evaluates that it is necessary to insist on the “use of negotiating instruments” to reverse the negative effects of US tariffs on Brazilian exports.
In a statement, CNI President Ricardo Alban says that now it is necessary “caution and technical discussions”, and that an entourage led by the Confederation, with more than 100 leaders of associations and industrial entrepreneurs, will land earlier this week in Washington to speak to entrepreneurs and representatives of the United States.
“We need every way to seek the firm and purposeful list of over 200 years between Brazil and the United States,” said Alban.
*With information from Vitória Queiroz, from CNN; André Vasconcellos, in collaboration for CNN; and Estadão Content
