Brazil should continue dialogue even after Trump announces 15% tariff

The American president’s announcement was made while a large part of President Lula’s team is on an official trip to India and South Korea

Ricardo Stuckert/PR
US President Donald Trump said this Saturday (21) that he will increase global tariffs from 10% to 15%

Members of the Brazilian government believe that it is still too early to make a concrete prediction about the most recent US government decisions. However, they emphasize that the strategy will follow the path of dialogue between the two countries.

The American president, Donald Trump, disse this Saturday (21), with immediate effect, following the setback imposed on Friday by the Supreme Court.

On the same day that the highest instance of theTrump published an executive order instituting a 10% global tariff for 150 days. This Saturday, the president announced on his social network that he will increase the percentage to 15%.

In the executive order published on Friday, the US president also announced that his government will continue with investigations led by the Office of the United States Trade Representative (USTR) for alleged abusive practices. Brazil is one of the countries investigated.

Brazilian government will insist on dialogue

The result of the trade balance between the two countries continues to be mentioned behind the scenes of the Luiz Inácio Lula da Silva (PT) government. It is one of the main reasons used by Brazilian authorities to show that the tariff against Brazil was unjustified from the beginning.

Trump’s announcement was made while much of the president’s team Lula is on an official trip to India and South Korea. Sources interviewed by the report say that It’s still too early to get a more accurate picture of what this executive order means, in practice, for Brazil.

They emphasize, however, that the Brazilian government will insist on dialogue in the coming weeks.

Another point remembered by Brazilian government sources, heard with reserve, is the mantra used since Trump announced the tariff: Brazil is one of the few countries with which the United States has a trade surplus.

Although it is not a guarantee of success in confronting the arguments between the two countries,this fact is always recalled as an argument against the tariffs and ongoing investigations.

Even Pix and March 25th became the target of US investigation

A investigation opened by the United States against Brazil involves, for example, Pix and commerce on Rua 25 de Março, in São Paulo. The American government’s investigation does not directly mention the payment system developed by the Central Bank and which has become routine in the country, but it says that Brazil “appears to be involved in a series of unfair practices with regard to electronic payment services, including, but not limited to, advantages for electronic payment services developed by the government”.

As for March 25, says the investigation, Brazil “engages in a series of acts, policies and practices that apparently deny the adequate and effective protection and enforcement of intellectual property rights”.

“The area of ​​Rua 25 de Março remained for decades one of the largest markets for counterfeit products, despite police operations directed at this area”, he claims.

Other points are also addressed in the investigation, opened by the USTR under the terms of Section 301, which is part of the Trade Law of 1974. Illegal deforestation in the country and the tariffs charged on ethanol, for example, are cited.

*With information from Estadão Conteúdo

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