Minister Gleisi Hoffmann (Institutional Relations) stated this Thursday that the retreat by the President of the United States, Donald Trump, on the tariffs imposed on Brazilian products is a “victory” for President Luiz Inácio Lula da Silva and a “defeat of traitors”, a role that for her fell to former president Jair Bolsonaro, federal deputy Eduardo Bolsonaro and the governor of São Paulo, Tarcísio de Freitas.
“Citing negotiations with @LulaOficial, Trump announces the withdrawal of extra 40% tariffs on meat, fruit, coffee and other products exported by Brazil to the USA. This is a great victory for President Lula in the defense of the country. From the first moment he remained firm in the face of attacks on our sovereignty, mobilized society and counted on the work of a large team of negotiators, under the command of vice-president @geraldoalckmin in coordination with Itamaraty. Lula knew how to talk seriously and haughtiness with Donald Trump, confirming that he is a true leader. Victory for Brazil and huge defeat for the traitors of the country, Jair and Eduardo Bolsonaro, and those who celebrated the tariff against the country, such as governor Tarcísio de Freitas and others”, wrote Gleisi on social media.
The decision was also well received by interlocutors from the Ministry of Finance. A member of the ministry highlighted that Trump’s retreat benefits products in which Brazil is very competitive, such as coffee, beef and orange juice. The expectation is for exports of processed products to resume, which fell between August and October.
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The list also includes banana, açaí and cashew nuts. Other fruits, such as tomatoes and mangos, will have a special regime, with exemption from the additional tariff at specific periods throughout the year.
The tariff came into force on August 6th. In the initial decision, Trump cited persecution of former president Jair Bolsonaro, in addition to threats to American platforms. Then, during the UN General Assembly in September, the president of the United States briefly met with President Luiz Inácio Lula da Silva and said that they had “excellent chemistry”. Officially, tariff negotiations opened on October 6, when the two leaders spoke by phone.
In this Thursday’s executive order, Trump mentioned an “initial advance” in negotiations between the two countries, a point considered important by the Treasury’s interlocutor.
Trump also cited verbatim the call with Lula and said he received recommendations from American government officials, especially on agricultural products.
“After considering the information and recommendations provided to me by these officials and the progress of negotiations with the Government of Brazil, among other factors, I have determined that it is necessary and appropriate to modify the scope of products subject to the additional ad valorem tax rate imposed by Executive Order 14323.”
In a statement, Senator Nelsinho Trad (PSD-MS), president of the Senate’s Foreign Relations Committee, stated that agribusiness cannot be the target of measures of a “political nature” and that the new decision goes in the right direction by considering Brazil a “reliable, competitive and essential part of global food security” supplier.
