The Brazilian government seeks a tariff agreement with the United States (USA) that is capable of preventing the White House from adopting the recommendation of the Office of the US Trade Representative (USTR), which suggested the imposition of an additional 25% tariff on part of imports from Brazil.
The government assesses that it is possible, although difficult, to reach a tariff agreement that is more advantageous, for both countries, than the 25% surcharge suggested by the USTR. This is because, among other reasons, the USA has a trade surplus with Brazil.
The USTR recommendation, made public last week, is the result of an investigation based on Section 301 of the US Trade Law. The argument used is that the Brazil would have “unfair” practices in trade relations, which included attacks against Pix to favor American payment companies.
Brazil countered that the arguments are not legitimate and that the decision is part of an attempt to interfere in internal affairs, in addition to expressing Washington’s unilateral trade protectionism.
The government has been questioning the additional US tariffs with the argument that the average tariff applied by Brazil on US imports is 2.7%, which would not justify the argument that North American companies would be harmed in accessing the Brazilian market.
New deadline
Brazil is now working towards a July 15 deadline to close a tariff agreement. This was the date set by the USTR for a definition on the topic. This deadline could, in theory, still be extended.
With this, Brazilian negotiators hope to have more time for an agreement, since the initial deadline stipulated after the meeting between presidents Luiz Inácio Lula da Silva (PT) and Donald Trump, in Washington, last month, It was 30 days ending this Sunday (7).
Difficulties in negotiations
Among the difficulties of negotiation is the fact that US is involved in several other tariff negotiations around the world, in addition to the war that is leading in the Middle East against Iran.
Meanwhile, the Brazilian government is evaluating the convenience of a new meeting between Trump and Lula. There is a possibility that the two will meet at the G7, in France, between June 15th and 17th. However, there is still no confirmation of a bilateral meeting.
Another difficulty in negotiating with the USA is that the Americans tend to have very broad demands, which would encompass several demands in different areas.
However, for now, Brazil is seeking an agreement specifically on tariff and trade issues, without other issues that could interest North Americans, such as rare earths. At the same time, the government claims that Pix does not enter into any negotiations with Washington.
A rate of 12.5%
On the other hand, the additional taxation of 10% or 12.5% imposed on 60 countries under the argument that these nations would not efficiently combat slavery-like work is seen by the Brazilian government as not being negotiated.
As it is a taxation imposed on a large part of the planet, it would have the objective of recomposing, under new legal and argumentative bases, the previous tariff overturned by the US Supreme Court of Justice.
The new rate affects, In addition to Brazil, Washington’s historical allies, such as Japan, the European Union, Canada and India, in addition to Argentina, chaired by Javier Milei, who has always positioned himself alongside Donald Trump on international issues.
