Brazil’s vice‑president calls Trump’s tariff no‑win situation
Pix is a successful technological development and bears no connection to the trade tariffs imposed by the US, said Brazil’s vice-President and Minister of Development, Industry, Trade, and Services Geraldo Alckmin on Wednesday (Jul. 16). After a meeting with the American Chamber of Commerce for Brazil (AmCham), Alckmin commented on the opening of a trade investigation by the US against Brazilian practices.
The instant payment system has become the target of a trade investigation by Donald Trump’s administration under the pretext that it could create a competitive disadvantage for US companies in the financial sector, such as international credit-card companies.
“Pix is a model, a success. What we need to address is the tariff issue [with the US], because it’s not justified at this level. It’s a no-win situation,” he declared. In his view, the loss will be felt by all parties involved.
In addition to Pix, the US questions deforestation, corruption, and the treatment given to some big techs.
The vice-president made his statements after meeting with the presidents of AmCham, Abrão Neto, and the Federation of Industries of Santa Catarina (FIESC), Mario Cezar de Aguiar. He pointed out that this is not the first trade investigation that the US has launched against Brazil. He added that the Brazilian government will provide all the answers and criticized the inclusion of deforestation in the probe.
“It’s not the first time an investigation has been opened. This has already been done; Brazil responded and the matter was closed. This time, Brazil will explain. As for deforestation, rates are falling, and Brazil is an example to the world. We have the world’s largest rainforest. Brazil is committed to reducing deforestation and restoring the forest,” he declared.
Letter to the US
Alckmin noted that Brazil sent the US a confidential proposal on May 16 to negotiate a trade agreement and review tariffs that impact relations between the two nations. Brazil has so far received no response, he pointed out.
“I signed a new document yesterday, together with [Foreign] Minister Mauro Vieira, asking for a response. We’ve sent it to negotiations and we’re waiting,” he said.
AmCham
The president of Amcham Brazil, Abrão Neto, also said he was in favor of the negotiations. He stressed that political disputes should not contaminate trade relations.
“Our unanimous wish is to seek a constructive, negotiated solution in order to prevent the tariff increase. We hope this is the way forward,” he stated.
In addition to AmCham and Fiesc, Alckmin met with representatives of US companies including Cargill, Coca-Cola, Caterpillar, and General Motors.
