Tariff: We will use all means to convince the USA, says Alckmin

The federal government will "use all means" to convince the United States not to continue with the new tariff against Brazil, said the vice president of the Republic, Geraldo Alckmin (PSB), in an exclusive interview with CNN Brasil.

"I understand that there is room for understanding, because this 25% rate that is being proposed is not fair", emphasized Alckmin.

In early June, the USTR (United States Trade Representative) proposed imposing 25% tariffs on all imports from Brazil, except for goods that qualify as "subject to national security tariffs" - so items such as beef, coffee and oil would be exempt from the tariff.

The body stated that Brazilian government policies on digital commerce, preferential tariffs, combating corruption, patent processing and piracy, ethanol and illegal deforestation generate legal uncertainty and unfair competition for US players.

The proposed lawsuit comes under Section 301 of the US Trade Law - a trade policy tool that allows the US to investigate and retaliate against other nations against trade practices deemed unfair.

On July 6, a public hearing will be held in the USA where civil society will be able to present arguments in favor or against the new tariff. The final decision on whether or not to apply the rate will be announced on July 15th.

"It doesn't make sense, Brazil is not a problem. We are going to argue by showing that the tariff is low, that this taxation is not fair", pointed out the vice president, resuming the arguments already raised by the government that the USA has a trade surplus with Brazil and that our average tax rate for North American products is low, at 3.7%.

In addition, he highlighted that of the ten products that Brazilians buy most from the USA, eight enter the country with zero tax rates.

Does trade opening reduce the impact of Trump's tariffs in Brazil? Understand

Source: CNN