Private sector aims to reduce damage while government seeks agreement with US

Representatives of the Brazilian productive sector aim to reduce the damage from the possible application of a tariff of up to 25% by the United States, while the federal government is still seeking an agreement with the Americans.

The private sector's focus has been on trying to expand the list of exceptions to tariffs and reinforce arguments that the measure will also harm American companies and consumers.

The strategy was already applied on the first day of the public hearing of the trade investigation opened by the Office of the United States Trade Representative (USTR), held this Monday (6).

The hearing brought together around 40 representatives from Brazilian and American business entities, divided into seven panels, and will help serve as the basis for the White House's decision on the application of tariffs of up to 25% on part of Brazilian exports. The process is expected to be completed on July 15th.

During the hearing, representatives of the private sector argued that the tariff will also have negative effects on the country's economy, by increasing the cost of inputs used by US industry and making products more expensive for companies and consumers.

The American Chamber of Commerce for Brazil (Amcham), for example, also maintained that the surcharge could produce an effect contrary to that desired by the Donald Trump government.

According to the entity, the measure tends to strengthen Asian competitors, especially China, in the Brazilian market, reducing the economic influence of the United States in the country.

Part of the business community also defends that a possible negotiation includes expanding access for American products to the Brazilian market and deepening cooperation in strategic areas, such as critical minerals. Despite this, negotiations between Brasília and Washington continue without concrete progress.

According to an estimate by the National Confederation of Industry (CNI), more than 4,000 products exported by Brazil could be affected by the new tariffs, equivalent to around US$14.9 billion in sales to the United States.

The Brazilian government has already responded to the accusations presented by the Americans and signals its willingness to discuss additional measures, but without giving up on topics considered strategic for national sovereignty, such as Pix. The expectation, however, is for a formal return from the American government.

The assessment so far is that the chances of the White House giving up the surtax on Brazilian products are low.

In diplomacy and business, there is a perception that the Brazilian case is part of a broader Trump strategy to encourage the reindustrialization of the United States, which reduces the chances of an agreement in the short term.

In addition to the diplomatic front, Itamaraty monitors the hearings through observers.

Itamaraty admits risk of US military action in Brazil | CNN PRIME TIME

This Tuesday (7), Senator Flávio Bolsonaro (PL-RJ), pre-candidate for President, will have five minutes to speak on the second and final day of the hearing. He has been against the tariffs announced by the United States days after his visit to Trump.

Paulo Figueiredo, Flávio's first-time ally, withdrew from participating in this Monday's hearing. He stated that the leading role should go to the senator. The stance comes days after negative repercussions for sexist statements.

Source: CNN