Critical minerals and rare earths may enter tariff talks with US
Critical minerals and rare earths may be brought into tariff negotiations with the US, Brazilian Finance Minister Fernando Haddad said Monday (Aug. 4). An agreement on both issues may be signed with the US government, he said.
“We have critical minerals and rare earths. The US is not rich in these minerals. We can make cooperation agreements to produce more efficient batteries,” he said in an interview with BandNews.
Currently, critical minerals such as lithium and niobium are used in the production of electric batteries and AI processors. Since May, the government has been discussing a new regulatory framework for AI and data-processing centers.
Contingency plan
Regarding the contingency plan to assist sectors affected by Trump’s 50-percent tariff, Minister Haddad said the measures are ready and should be announced by Wednesday (6), the date set for the tariffs to take effect.
He did not rule out the possibility of other products being included in the US list of exceptions. The minister reiterated that Brazil will continue to negotiate and that the current terms imposed by the US government are unacceptable, but may improve.
“I believe that something [the expansion of the list of exceptions] may still take place before [August] 6. It may happen, but I’m saying we’re not working with a deadline. We will not leave the negotiating table until we can see an agreement, which requires common interests,” he stated.
One of the sectors that could be benefited is coffee. After meeting with vice-President and Development Minister Geraldo Alckmin on Monday, the head of Brazil’s coffee exporters council Cecafé, Marcio Ferreira, said there is a 50-percent chance that the sector will be exempted from the tariff.
