The federal government is holding an emergency meeting this Tuesday (2) to define Brazil's strategy in the face of new US trade offensiveThe meeting was called just hours after the Office of the United States Trade Representative (USTR) concluded an investigation against Brazil and recommended the application of 25% tariffs on Brazilian products exported to the US market.
The meeting will be attended by the Vice President and Minister of Development, Industry, Trade and Services, Geraldo Alckmin, the Minister of Finance, Dario Durigan, the Executive Secretary of the Ministry of Development, Márcio Elias, as well as members of the Ministry of Foreign Affairs. Foreign Minister Mauro Vieira is not participating because he is traveling abroad.
The move comes at a time considered delicate for trade relations between the two countries and represents another chapter in the tensions that began after the opening of the US investigation based on Section 301 of the United States Trade Act.
Report cites Pix and Brazilian policies.
In the opinion released by the USTR, the US government argues that certain policies adopted by Brazil are "unreasonable" and would harm US business interests.
The document mentions a number of sensitive topics, including the Pix payment system, digital commerce, intellectual property protection, the ethanol market, combating deforestation, and measures related to corruption.
The inclusion of some of these topics surprised members of the Brazilian government. Behind the scenes, aides to President Luiz Inácio Lula da Silva considered some of the arguments presented by the Americans to lack consistent technical basis and described the presence of certain points in the report as "absurd."
Despite the critical reaction, members of the economic team believe the scenario could have been tougher. This is because the proposed tariff was set at 25%, a percentage considered lower than what had been speculated in some sectors, and the report also included a broad list of exceptions for certain products.
Another point seen as positive by members of the government is the fact that the document does not end negotiations and mentions the possibility of building an agreement between the two countries.
Brazilian strategy under discussion
The expectation is that Tuesday's meeting will serve to align Brazil's official response and define the next steps in negotiations with Washington.
Among the alternatives being analyzed is the continuation of diplomatic talks through the working group created after the meeting between President Lula and President Donald Trump in May. The objective would be to seek a negotiated solution before the eventual entry into force of the trade measures.
At the same time, the government is also studying mechanisms foreseen in the Economic Reciprocity Law, an instrument approved to allow for proportionate responses to trade barriers considered detrimental to Brazilian interests.
The assessment within the Presidential Palace is that any measure should take into account the impacts on national exports, Brazilian industry, and the diplomatic environment between the two countries.
Public consultation precedes final decision.
Although the USTR recommendation represents an important step forward in the process, the measure has not yet come into effect. The opinion now opens a new phase of public consultation, during which companies, sector entities and other interested parties may submit comments on the proposal.
Only after this step will the US government decide whether or not to adopt the recommended trade sanctions.
The legal deadline for completing the procedure ends on July 15, a date considered crucial for the future of trade relations between Brazil and the United States.
Until then, the Brazilian government intends to intensify diplomatic efforts to try to prevent the application of tariffs or reduce their impact on strategic sectors of the national economy.
The discussion gained additional relevance because the United States is among the main destinations for Brazilian exports, especially in industrial and higher value-added segments. Any tariff increase tends to raise costs, reduce competitiveness, and have negative effects on exporting companies.
Given this scenario, the meeting convened by the government is seen as the first step towards building a coordinated response that combines diplomatic negotiation, trade defense, and the possible adoption of reciprocal measures, should the tariffs be effectively implemented.
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