If the new 25% rates proposed by USTR (United States Trade Representative) come into force at the beginning of this month, one third of Brazilian exports will be impacted by rates of 37.5%, according to projections made by CNI (National Confederation of Industry).
This number represents 27.5 percentage points more than the current tariff of 10%. The remainder of exports, around 3.6%, would increase by 2.5% compared to the current rate.
A few weeks ago, the , except for goods that qualify as “subject to national security tariffs.”
The body says it has determined that the Brazilian government’s policies on digital commerce, certain tariffs and illegal deforestation are subject to legal action under so-called Section 301 of the Act – a trade policy tool that allows Americans to investigate and retaliate against other nations for trade practices considered unfair.
Simultaneously, one, with Brazil present among the nations investigated. According to the USTR, these countries do not adopt or effectively apply restrictions on the import of goods produced with forced labor.
In this case, the proposal is to apply a 12.5% additional fee. When both measures affect Brazilian exported products, the total additional tariff can reach 37.5%.
“The possible imposition of new tariffs does not benefit either side. They would increase costs for companies, reduce competitiveness and create uncertainty for investments. The most efficient path is dialogue”, says Ricardo Alban, president of the CNI.
The confederation also raised the main products that will be impacted if the two tariffs come into force. Check it out:
5 products that may be impacted by a 37.5% tariff
- Unalloyed pig iron;
- Cane sugar in solid form;
- Inedible tallow;
- Undenatured ethyl alcohol;
- Pine pattern wooden frames.
5 products that may be impacted by a 12.5% tariff
- Iron ore and concentrates, agglomerated pellets;
- Quartzite slabs;
- Orange citrus fruit essential oils;
- Silicon;
- Chemical wood pulp, sulfate or soda, grades for dissolving.
However, it is worth noting that the proposed tariffs do not come into force automatically. On July 6th and 7th, the US trade office will hold public hearings on the two investigations into .
