Alckmin says Lula government should not retaliate against US for tariffs

"The idea is not retaliation. It is not. They say that [in] an eye for an eye, what can happen is that both of you go blind. Reciprocity is [saying] 'we are being wronged and we want to correct this'. We have instruments to do so, at the appropriate time, in the appropriate way", declared Alckmin.

He spoke in an interview with journalists after meeting, together with the Minister of Industry and Commerce, Márcio Elias Rosa, with representatives of sectors affected by the tariff.

The statement represents a retreat in the position of the PT administration. Last week, when the USTR (Office of the US Trade Representative) announced the surcharge against Brazil, the Brazilian government stated that it would "immediately" begin the procedures to activate the Reciprocity Act against the United States.

By once again classifying the tariffs as unfair, the vice president reinforced that one of the main objectives will be to open new markets for national items. He cited Mercosur's agreements with the European Union and Singapore. "And negotiations are underway to improve the market with Japan, Mexico and India," he said.

ApexBrasil (Brazilian Export and Investment Promotion Agency) has already announced that it will launch, in August, a R$130 million market diversification plan.

The Minister of Industry and Commerce stated that the Brazilian government is mapping which American counterparts can help Brazilian sectors in negotiations to reduce the fees imposed by the White House, in addition to estimating what the impacts will be on job creation and companies' profits.

According to him, Lula's guidance is that the economic team talks to all affected segments of the national industry and continues negotiating. There is no deadline for announcing new measures. The final decision will be made by the president, said Elias Rosa.

"We are confirming data, collecting new data, and also receiving suggestions on ways in which these sectors can be served. Whether due to cost, each sector represents this tariff, or due to policies that can be adopted to diversify markets. This is a major challenge that needs to be followed", he said.

"The fact that it is unfair, unreasonable, undue, does not mean that the Brazilian government will not adopt all measures to, first, help those in need", added the minister.

The meetings with the segments take place while Brazil awaits, this week, the US government's decision on a possible new round of tariffs, this one at 12.5% and based on an investigation into forced labor.

The fee is expected to replace the 10% Section 122-based surcharges, which expire at the end of July.

Elias Rosa stated that the government is waiting to find out whether the 12.5% will be cumulative to the 25% or not. “From there, a new scenario emerges,” he said.

At this Tuesday's meeting, representatives from Anfavea (National Association of Motor Vehicle Manufacturers), Abimaq (Brazilian Association of the Machinery and Equipment Industry, Abiplast (Brazilian Association of the Plastic Industry), Abit (Brazilian Association of the Textile and Clothing Industry), among others, were present.

On Wednesday (22), another two rounds of conversations will be held.

According to government calculations, the tariff affects around 18% of exports to Americans, or something like US$7.4 billion (R$38 billion) in goods.

As Folha de S. Paulo showed, some sectors will feel the surcharge more strongly. This is the case of the wood segment, which will see 81% of exports to the USA affected by the new tariffs, according to the CNI (National Confederation of Industry).

The new round will also harm 56% of non-metallic mineral exports, 51% of chemical exports and 38% of food exports to the US.

Brazil is right about US tariffs, it cannot lower its head, says Durigan

Durigan made this and other statements during a press conference he called to, more specifically, address the work that the Brazilian government has been carrying out to try to review tariffs and mitigate part of their effect on Brazilian companies