Trump Tariffs Could Wound Brazil\’s Economy?
Brazil Prepares for Trump’s Steep Tariffs
Trump has set 50 % duties on Brazilian goods effective August 1, threatening Brazil’s export economy.
Key Sectors at Risk
- Agriculture – Brazil exports beef, chicken, soybeans, corn, coffee, sugar and orange juice to the U.S.
- Manufacturing – Roughly half of Brazil’s aircraft, fisheries and defense exports target the U.S. market.
- Aeronautics – Embraer, the world’s third‑largest aircraft maker, warns the tariff could trigger massive workforce cuts.
Immediate Impact
Before the duty takes effect, Brazil has halted shipments of meat, fruit, fish and grains. About 77,000 t of fruit sits in containers awaiting a diplomatic resolution.
New beef exports are being analyzed as they would only arrive after August 1, the Beef Association said.
Diplomatic Response
President Lula has asked Vice‑President Alckmin to contact the White House. A Brazilian proposal sent in May has yet to elicit any reply.
Despite the political hostility, Lula plans to keep negotiating as long as possible, stressing that trade with the U.S. remains Brazil’s most important manufactured‑product relationship.
Contingency Measures
- Credit lines for companies struck by the tariffs.
- Diversifying trade partners – Europe, Mexico, Canada and, where feasible, China.
- Sector‑specific advice – redirection of oil or coffee to other markets is easier than aircraft parts.
Lula pledged reciprocity measures if the tariffs materialize, intending to deepen the economic impact on both economies.
