Planalto considers it unlikely that Brazil will escape tariffs

The Palácio do Planalto already sees it as unlikely that Brazil will escape US tariffs, according to sources close to the matter. The White House threatens fees of 25% under "section 301" investigations and 12.5% for alleged lack of control over forced labor.

For diplomats, the 12.5% tariff is a path found by the USTR (United States Trade Representative) to replace the rates overturned by the North American Supreme Court and is practically a given. Brazil and 59 other countries are targets of this investigation.

Regarding section 301, the assessment is that the White House should not deny the USTR's recommendation so as not to create a "precedent" for its other negotiations.

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Palace sources understand that Donald Trump will not give up taxation without a counterpart that he can present as a victory to his domestic electorate.

Today, the topic is debated in a technical working group between the countries. The Brazilian government, however, has signaled that it will not make concessions on topics mentioned in the 301 investigation, such as Pix. Brazil has until July 15th to stop the White House from applying the tax.

Aides to President Luiz Inácio Lula da Silva (PT) have already signaled that the most appropriate strategy may be to try to exempt specific and relevant items from the export agenda, such as machinery and equipment and fish. Most of the best-selling products in the US will not be impacted by the tax.

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Source: CNN