A decision by Donald Trump’s administration in the United States to classify Brazilian criminal factions as terrorist organizations took effect this Friday (5), with potential economic and geopolitical consequences for Brazil. The measure was announced on May 28.
The Brazilian government criticized the decision, arguing that it gives Washington room to interfere in domestic affairs under the pretext of combating terrorism. The presidential palace maintains that crime should be fought through international cooperation that respects countries’ sovereignty over their territories.
Experts consulted by Agência Brasil say the measure seeks to restrict Brazil’s sovereignty and could serve as a pretext for direct foreign intervention against the country.
The government and experts also argue that the measure could harm Brazil’s economy, affecting tourism, investment, foreign trade and the financial system.
The Trump administration has been designating Mexican cartels and criminal organizations in countries including Venezuela, Ecuador and Colombia as terrorists. In March this year, the White House also formed a coalition called Shield of the Americas, bringing together governments ideologically aligned with Washington, ostensibly to combat drug trafficking but also to limit the economic influence of the White House’s geopolitical rivals, such as China and Russia.
The fight against drug trafficking was used to justify the kidnapping of then Venezuelan president Nicolás Maduro and to pressure Mexico, actions that the country’s president, Claudia Sheinbaum, has denounced as foreign interference in domestic affairs.
Tariffs
Four days after announcing the designation of Brazil’s criminal factions as terrorists, the Office of the United States Trade Representative published a recommendation that the White House impose 25% tariffs on imports from Brazil over alleged unfair trade practices.
The document also criticized Brazil’s Pix instant-payment system, which it claimed was harming U.S. payment companies such as Visa, Mastercard and WhatsApp Pay.
The day after the criticism of Pix, the Trump administration announced plans to impose additional tariffs of 10% or 12.5% on imports from 60 countries, including Brazil, alleging shortcomings in efforts to combat trade in goods manufactured with forced labor.
The Brazilian government disputed the justifications, arguing that they conceal unilateral protectionist measures. Brazil’s Foreign Ministry says the country may use mechanisms provided for under its Reciprocity Law, which authorizes Brazil to adopt trade measures against countries and blocs that impose unilateral barriers on Brazilian products traded in the global market.
Source: Agência Brasil
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