Brazil goes to the USA to try to stop Trump's tariffs; see the arguments from industry and agriculture

Brazil responds to United States report and disputes 25% tariff
Public hearings promoted by the Office of the United States Trade Representative (USTR) begin this Monday (6), a stage considered decisive in the American trade investigation that proposes an additional 25% tariff on Brazilian products.
The hearings are part of the process, based on Section 301 of American trade legislation, and allow companies, associations, governments and other interested parties present their arguments before the United States' final decision. (learn more about the hearings)
The USTR is the body responsible for formulating United States trade policy. It also conducts investigations into practices considered harmful to American trade and may recommend measures such as the imposition of tariffs.
Representatives of Brazilian industry and agribusiness will be among the participants. They intend to convince the American government that the surcharge would harm not only Brazilian exporters, but also US companies, consumers and production chains.
Among the participants are the National Confederation of Industry (CNI), the Federation of Industries of the State of São Paulo (Fiesp), the Brazilian Association of the Machinery and Equipment Industry (Abimaq) and the Confederation of Agriculture and Livestock of Brazil (CNA), as well as representatives from the coffee, rice, sugar, corn ethanol, pig iron, ornamental rocks, wood, paper, footwear, honey and intellectual property.
Meanwhile, technical teams from the governments of both countries are expected to meet this week to align preparations for a final round of high-level negotiations before July 15, the deadline in which Washington will decide whether to move forward with the imposition of tariffs.
The defense of Brazilian industry
The strategy of Brazilian industry is to show that the economies of the two countries are strongly integrated and that the tariff is also would increase costs for American companies.
▶ Manufacturing industry
Fiesp, which represents industries in São Paulo, will argue that the 25% tariff has no technical or economic justification and could harm companies and consumers in both countries.
In São Paulo, the most exposed segments are precisely those with the highest added value, such as machinery and equipment, auto parts, processed foods, wood, furniture and other manufactured products.
According to CNI estimates, if the measure is adopted:
31.6% of Brazilian exports to the United States will pay a total tariff of 37.5% (sum of 25% from the commercial investigation with another 12.5% from another American accusation, of "failure to combat forced labor" in the country);
35.2% of all Brazilian exports to the American market will be affected by the new surcharge;
Added to the already existing tariffs of Section 232, 54.1% of Brazilian exports to the United States will be subject to some type of additional tariff.
During the hearing, the entity also intends to refute four points of the US investigation:
Intellectual property: it will argue that Brazil has reduced the stock of patents at the INPI, strengthened the fight against piracy and expanded inspection actions;
Import tariffs: it will state that Brazilian trade agreements have limited scope and that around half of imports coming from the US already enter in the country with zero tariff or reduced by special regimes;
Deforestation: will argue that the growth in agricultural production results mainly from gains in productivity and technology, and not from expansion into forest areas;
Bilateral relationship: will defend greater commercial integration and technical cooperation between Brazil and the United States, instead of the creation of new barriers.
Fiesp: 'Tariff does not make economic sense'
Roberto Azevêdo, Superior Council of Foreign Trade of Fiesp
Disclosure
The president of the Superior Council of Foreign Trade of Fiesp, Roberto Azevêdo, told g1 that the entity intends to demonstrate that the accusations made by the USTR are not sustainable.
"Brazilian practice is not discriminatory, is not unfair or illegal from the point of view of international trade rules, and does not harm American companies", says Azevêdo.
In the investigation, the American government questions Brazil's trade agreements with countries like Mexico and India, claiming that they grant preferential tariffs to products from specific sectors.
The Brazilian government counters, stating that these agreements are legitimate, follow WTO rules and cannot be considered a practice subject to trade sanctions.
Azevêdo, who is also former director general of the World Trade Organization (WTO), highlights that the proposed tariff will also not produce the effects intended by the USA.
"This tariff does not make sense from an economic point of view. It will not solve the problems highlighted by the USTR. On the contrary, it will increase the costs of production chains in Brazil and the United States, raise prices for consumers and harm companies in both countries."
According to Azevêdo, the path involves expanding negotiations between governments. "The Brazilian government could be even more proactive and creative in the search for solutions. Negotiating is not giving in or losing sovereignty. It is to seek reciprocal gains for both sides."
Brazil sent, on Wednesday (1st), a response to the USA regarding the investigation opened by the Donald Trump government.
In the document, signed by Chancellor Mauro Vieira, Brazil states that the American government's criticisms of Pix and the decisions of the Federal Supreme Court (STF) are not related to trade, but to disagreements over internal policies.
Roberto Azevêdo states that, although the technical defense presented by Brazil is consistent, the solution depends on political articulation. "It is not enough to present legal arguments, it is necessary that political bodies are constantly involved to seek a solution."
CNI defends dialogue to avoid losses to both countries
Pecém Industrial and Port Complex
Disclosure/CNI
The National Confederation of Industry (CNI) will defend, during the hearing, that the additional tariff of 25% has no legal, economic or strategic justification and could harm Brazilian companies and companies. American companies.
In an interview with g1, CNI's International Trade and Integration Manager, Constanza Negri, stated that there is no evidence that American companies are discriminated against in Brazil.
"From our perspective, it is clear that these measures have no justification in any of the three plans: legal, economic or strategic", she stated.
According to her, the commercial relationship between the two countries is complementary and the surcharge would increase costs for the entire production chain.
"Any measure that makes it more expensive or creating barriers to this relationship will bring harm not only to Brazil, but also to the United States", she said.
The executive also stated that the industry defends the prioritization of negotiations between governments and warned that the sector's main concern is the uncertainty generated by successive changes in US trade policy.
"The private sector has been suffering not only from the drop in exports, but also from the great unpredictability. Companies do not know which tariff they will be subject to", he stated.
▶ Machinery and equipment
Disclosure
The United States is the main destination for Brazilian exports of machinery and equipment
The Brazilian Association of the Machinery and Equipment Industry (Abimaq) will ask for the sector to be excluded from a possible additional tariff of 25%, arguing that the commercial relationship between Brazil and the USA is based on integrated production chains, and not on direct competition.
The United States are the main destination for Brazilian exports of machinery and equipment and account for around a quarter of the sector's foreign sales. In 2025, however, the tariffs imposed by the American government led to a drop of more than 9% in these exports.
In addition to the 10% global tariff in force since February 2026, some products are also subject to Section 232 tariffs, applied to steel and aluminum. Before all the tariffs, the majority of Brazilian machines entered the market. American market with zero tax.
Abimaq's main line of defense will be to show that a surcharge would also harm American industry.
According to the entity, 82% of Brazilian exports of machinery to the United States occur between companies in the same economic group, such as an American headquarters and its branch in Brazil.
For Abimaq, this shows that the production chains of the two countries are highly integrated and that a surcharge would increase the costs of the American industry itself, which depends on these components and equipment.
To g1, the director of Foreign Trade at Abimaq, Patrícia Gomes, stated that much equipment is developed to order, go through certification processes and require a long-term relationship between manufacturers and customers.
"It is very difficult to replace a supplier of machinery and equipment. We are talking about medium and long-term projects, with certified equipment and developed together with customers."
According to the executive, a rupture in these chains would increase the costs of the American industry itself and would affect investments in strategic sectors, such as construction, logistics, mining, energy and transport.
Despite defending the complete exclusion of the sector, Abimaq recognizes that the scenario is still uncertain and considers it more likely that the list of exempt products will be expanded. (learn more)
"Our objective is to seek the exclusion of the machinery and equipment sector. But, given the uncertainties, we are also working to expand the list of exceptions if tariffs are maintained."
▶ Steel
The Iron Industry Union in the State of Minas Gerais (Sindifer), which represents companies producing pig iron in the main exporting state of the product in the country, will ask for the exclusion of Brazilian pig iron from the tariff.
⚙ Pig iron is the raw material used in the manufacture of steel and cast iron parts. The product supplies steel mills and foundries and is considered an essential input for several industrial segments.
The entity states that the product is essential for American steel mills, has no relation to the issues investigated by the USTR and is difficult to replace.
It also highlights that around 83% of Brazilian pig iron exports are destined for the USA and that national production uses charcoal from planted forests, reducing carbon emissions.
▶ Agribusiness
Individual coffee is among the products outside the exemption list and that can be taxed.
Consciência Café. - Disclosure.
In the case of agribusiness, three Brazilian segments - honey, instant coffee and fish - participate in the hearings in the United States to try to avoid the new tariff proposed by Trump.
The central strategy is to demonstrate that the measure can put pressure on consumer prices, increase inflation and also affect production chains within the the American economy itself.
In defense of the sector, entities such as:
Brazilian Agriculture and Livestock Confederation (CNA);
Brazilian Rural Society;
Sugarcane and Bioenergy Industry Union (UNICA);
Brazilian Rice Industry Association (Abiarroz);
Brazilian Coffee Exporters Council (Cecafé);
Brazilian Association of the Soluble Coffee Industry (ABICS);
National Corn Ethanol Union (UNEM);
Brazilian Association of Honey Exporters.
The Brazilian Agriculture and Livestock Confederation (CNA), which represents more than 5 million rural producers, states that the tariffs harm a commercial relationship considered complementary between the two countries.
In a statement sent to the USTR, the entity maintains that Brazilian trade agreements with countries as Mexico and India follow WTO rules and do not cause harm to the United States.
According to the CNA, these agreements represent around 1.9% of Brazilian imports, while the United States remains the second largest supplier to the Brazilian market.
The CNA also disputes the association between the growth of agribusiness and illegal deforestation, stating that the increase in production occurred mainly due to productivity gains and technological innovation. As an example, it cites that, between 2005 and 2026, grain production grew 213%, while deforestation in the Amazon fell 79%.
As an alternative to tariffs, the entity defended the strengthening of bilateral cooperation in areas such as sustainable agriculture, biofuels and trade facilitation, also highlighting the dependence of Brazilian agriculture on inputs imported from the United States.

Source: G1