Brazil’s industry seeks US partners to reverse American tariff hike
Brazilian industrialists are working with US business leaders on a joint effort to pressure the Trump administration to negotiate the tariff hike with the Brazil’s government. The industrialists are in the United States on a delegation led by the National Confederation of Industry (CNI).
“The Brazilian industrial sector has been working with US partners to pressure the US government to reach a consensus to overcome the crisis. We are working to bring both governments together and find a way out of this impasse,” stated Flávio Roscoe, president of the Federation of Industries of the State of Minas Gerais (FIEMG).
In addition to representatives from industrial sector associations, the CNI’s international mission - which met in Washington, D.C., on Wednesday (Sep. 3) and Thursday (4) - included approximately 80 Brazilian and 50 North American businesspeople.
“The immediate result is the strengthening of synergy between businesspeople and the development of collaborative work that will bear fruit. I believe this joint effort in both countries can mobilize political forces in the right direction to overcome the crisis,” added Roscoe.
According to André Rocha, president of the Federation of Industries of Goiás (FIEG), the business delegation aims to achieve either a reduction in tariffs or an expansion of the list of products exempt from the tariff hike.
“We are negotiating with our counterparts, the American Chamber of Commerce and the US Chamber, precisely to try to reduce tariffs or obtain a new list of exemptions,” said Rocha.
Tackling political misunderstandings
CNI President Ricardo Alban emphasized that the mission seeks to establish technical criteria for negotiations, while also addressing political misunderstandings between the two countries.
“What we want here is to ensure a platform for dialogue - to make sure a negotiating table exists where technical, commercial, and economic arguments are prioritized and valued. This allows us to create alternatives to address potential misunderstandings, especially those arising from political or geopolitical issues,” said Alban.
Brazil’s measures
On August 13, the Brazilian government announced a set of measures to support companies, exporters, and workers impacted by the surcharges imposed by the United States on Brazilian goods.
Called the Sovereign Brazil Plan, the measures aim to strengthen the production sector, protect workers, and promote diplomatic, commercial, and multilateral solutions.
Among the main measures are new lines of credit. The Export Guarantee Fund alone will receive BRL 30 billion, as announced by Brazilian President Luiz Inácio Lula da Silva.
The resources will be used to fund affordable credit and expand export financing. The most affected companies will have priority in obtaining credit, taking into account their revenue dependence on exports to the US, the type of product, and the company’s size.
Small and medium-sized businesses will also be eligible to use guarantee funds to secure credit. The government emphasizes that access to these lines will be conditional on job retention.
