Brazil's reaction to the new 25% tariff announced by the United States could provoke additional measures from Washington. In the document detailing the surcharge, released this Thursday (16), the North American government stated that it may consider the current level of commercial punishment insufficient if the country adopts reciprocity actions.
US threatens to expand sanctions if Brazil retaliates 25% tariff
Brazil's reaction to the new 25% tariff announced by the United States could provoke additional measures from Washington. In the document detailing the surcharge, released this Thursday (16), the North American...
According to the text, a possible increase in tariffs on products from the United States or the imposition of new trade restrictions by Brazil could be interpreted as a sign that the measure announced so far has not been enough to change practices considered unfair by the Americans.
“Brazilian actions that increase the burden or restriction on US trade, such as tariff increases on US products, rather than addressing US concerns about unfair practices found in the investigation, may indicate that US action at this level is not sufficient to obtain the elimination of Brazil's acts, policies and practices”, states the document.
The United States government also left open the possibility of resorting to other legal instruments and authorities, if it considers it necessary to increase pressure on Brazil.
The warning was made after the Brazilian government announced that it intends to resort to the mechanisms provided for in the Economic Reciprocity Law. The legislation allows the country to adopt equivalent measures against nations that impose unilateral trade barriers on Brazilian exports, including surcharges and other restrictions.
The new North American tariff will come into effect on July 22. Despite the general rate of 25%, a relevant part of Brazilian products were excluded from collection.
The list of exceptions includes coffee, organic honey, açaí, beef, oranges, rare earths and other items considered important for the United States market or difficult to replace by suppliers from other countries.
On the other hand, sectors such as ethanol, agricultural machinery, footwear, clothing, paper, sugar and some chemical products will be affected by the surcharge.
The decision opens a new stage in the trade dispute between the two countries. While the Brazilian government evaluates how to apply the Reciprocity Law, the United States signals that a tariff response could result in even harsher sanctions.
List of exemptions from Trump's new tariff has more than 2,100 items and includes meat, instant coffee and works of art
More than 2,100 Brazilian products will be excluded from the 25% tariff imposed by the United States. The list includes meat, coffee, orange juice, pig iron, medicines and aircraft parts, but leaves out sectors such as shoes and machinery.
Source: Noticias ao Minuto - Ultima Hora
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