Industrial and trade associations show concern over Trump’s tariffs
The imposition of 50-percent tariffs on Brazilian products by US President Donald Trump’s government has been met with concern by the Brazilian productive sector. Some organizations claim that the measure makes exports unviable and warn of the risks to the Brazilian economy.
In a statement, Brazil’s National Confederation of Industry (CNI) said there was no economic fact to justify the decision. The organization calls for intensified negotiations to preserve the relationship with one of Brazil’s top trading partners.
“The impact of these tariffs could be serious for our industry, which is deeply interconnected with the US production system. A break in this relationship would do a lot of damage to our economy. That’s why, for the productive sector, the most important thing now is to intensify negotiations and dialog in a bid to reverse this decision,” CNI President Ricardo Alban said in a statement.
Agriculture
Another sector likely to be heavily affected by the tariff is the meat sector. In the view of the Brazilian Association of Meat Exporters (ABIEC), Trump’s measure will make the cost of Brazilian meat so high it will make it impossible to sell the product to the US.
“ABIEC reinforces the importance of geopolitical issues not becoming barriers to global supply and to food security, especially in a scenario that requires cooperation and stability between countries,” the note reads.
The association also argued for the resumption of negotiations and said it is willing to contribute to the dialogue. “We are willing to engage in dialogue, so that measures of this nature do not have an impact on the Brazilian productive sectors or on US consumers, who receive our products with quality, regularity, and affordable prices,” the association added.
The Parliamentary Agricultural Front (FPA) also expressed concern about Trump’s move. In a statement, it stressed that the measure represents a warning to trade and political ties between the two nations and affects Brazilian agribusiness.
“The new tax rate has direct repercussions and affects Brazilian agribusiness, with impacts on the exchange rate, the consequent increase in the cost of imported supplies and the competitiveness of Brazilian exports,” it declared.
“Faced with this scenario, the FPA advocates a firm and strategic response. It is time for caution, sharp diplomacy, and Brazil’s active presence at the negotiating table,” the statement goes on to read.
International trade
The Brazilian Foreign Trade Association (AEB) said it was surprised and outraged to hear that the US has increased its import tariff on Brazilian products to 50 percent. According to the association’s executive president, José Augusto de Castro, this is not an economic measure, but a political one with a major economic impact.
“It is certainly one of the highest taxes a country has ever been subjected to in the history of international trade, only applied to the worst enemies, which has never been the case with Brazil,” said AEB Executive President José Augusto de Castro. In addition to trade difficulties with the US, he said, the announcement from the White House could create a negative image of Brazil and make importers from other countries afraid to do business with our companies—after all, who would want to get into trouble with President Trump?”
AEB believes that common sense will prevail and the tax will be reversed.
*Douglas Correa, from Rio de Janeiro, contributed to this article.
