Members of the Brazilian government believe that it is still too early to make a concrete prediction about the United States government’s most recent decisions. However, they emphasize that the strategy will follow the path of dialogue between the two countries.
US President Donald Trump said this Saturday (21) that with immediate effect, after the setback imposed on Friday (20) by the Supreme Court.
On the same day that the US president imposed more, Trump published an executive order instituting a . This Saturday (21), the president announced on the social network Truth Social that he will increase the percentage to 15%.
In the executive order published on Friday (20), the US president also announced that the government will continue with investigations led by the Office of the United States Trade Representative (USTR) into 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 it was unjustified from the beginning.
Trump’s announcement was made while a large part of President Lula’s team is on an official trip to India and South Korea. Sources interviewed by the report say that it is still too early to have 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. Lula and Trump are expected to meet in the United States in March.
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 remembered as an argument against the tariffs and ongoing investigations.
Pix and 25 de Março became the target of US investigation
The 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, the investigation says that 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 Section 301, which is part of the Trade Law of 1974. Illegal deforestation in the country and tariffs applied to ethanol, for example, are cited.
