'Big impact': Trump's 25% tariff worries exporting companies in the interior of SP

Donald Trump's American government imposes severe taxation: for every US$100 in goods sent, the importer in the US pays an additional US$25 in taxes alone. The change directly threatens around US$15 billion in Brazil's annual sales. The economic impact of American taxation is asymmetric. While commodities such as coffee and orange juice were left out, major sectors such as ethanol, industrial machinery and steel structures were hit. READ ALSO: MEASURES: Lula government releases R$18.5 billion in credit for companies affected by tariffs from the Trump government UNDERSTAND: US tariffs: additional rate of 25% comes into effect this Wednesday; see questions and answers Concern and loss of competitiveness Exporting companies in São Carlos (SP) fear the impact of Trump's tariffs Reproduction/EPTV In São Carlos and the region, the atmosphere among industrialists is one of strong apprehension. For local metallurgical companies that have the North American market as their main destination, the surcharge in practice has already begun to nullify their competitive advantage in relation to other economic blocs. The director of the steel casting company Engemasa, João Sverzut Baroni, reports on the immediate difficulties generated by the new customs barrier. "For us, it ends up making many of the customers we have there unviable. The United States is the main market that Engemasa serves, so it is a big impact for the company, because we are no longer competitive versus the competition that comes mainly from Europe." To mitigate losses and avoid losing customers, industries in the region have already begun to design new operating strategies, although the transition process to the global market is complex and gradual. According to Baroni, change requires long-term planning. "We are trying to open new markets, this is a movement that takes 3 to 5 years, because the equipment is custom-made, so there is an entire supply certification process." See the full EPTV2 report: Trump's tariff worries exporting companies in São Carlos and the region Political differences and risks to employment The United States claims environmental and regulatory justifications to validate the tariff increase. On the other hand, the Center for Industries of the State of São Paulo (Ciesp) harshly criticized the decision. In an official note, the entity regretted the measure, classifying it as "totally political". Experts warn that the decline in foreign sales could trigger a cascade effect in the production chain in the interior of São Paulo, directly impacting the level of local employment if credit from the federal government does not reach the end quickly. Economist Orion Godinho explains what changes in practice for the North American consumer market. "The buyer of Brazilian products in the United States will look at the cost of a Brazilian product due to this tariff and sometimes it will take away from their product portfolio, in other words, this will reduce the number of businesses, it will reduce the companies' ability to create new jobs and employ people". Exporting companies in São Carlos (SP) fear the impact of Trump's tariffs Reproduction/EPTV Change of route and new trading partners Despite the challenging scenario, analysts point out that the American isolation movement has accelerated a geographic diversification that was already underway in Brazilian foreign trade. According to Godinho, the US market was already showing signs of slowing down for the national product. "And I believe that exporters have already been preparing themselves and have already sought to sell products through other channels. So, the United States has even lost a little of the relevance it had within the destination of our exports. And the tendency, if this tariff continues, is that this will continue to happen and intensify", he stated. The current tariff does not affect Brazilian cargo that was already in transit towards American ports before it came into effect. Diplomatic representatives from Brazil and the United States keep negotiations open. In parallel, the short and medium term expectation is that the Brazilian market will once again intensify commercial bridges with other partners, such as China, Latin America and the European Union. Release of credit for companies In response to the severe impacts on national industry, President Luiz Inácio Lula da Silva announced the release of R$18.5 billion in credit to help Brazilian companies affected by US tariffs and also those impacted by conflicts in the Middle East. The package, called "Sovereign Brazil 3", will consist of R$13.5 billion in unused resources from the first edition of the program and rural debt renegotiations, in addition to another R$5 billion contributed by BNDES. EPTV VIDEOS: See more news from the region on g1 São Carlos and Araraquara