The federal government will work to reverse the imposition of tariffs on Brazil’s exports to the United States, announced on Wednesday (9) by President Donald Trump.
“We will work to reverse this, because this tariff makes no sense. It even harms the American consumer as well. We understand that it is inappropriate and unjustified. We will appeal to the World Trade Organization (WTO)”, stated Vice President of the Republic and Minister of Development, Industry, and Trade Geraldo Alckmin, after the inauguration of the New Francisco Morato Viaduct, in São Paulo, this Sunday (13).
According to Alckmin, the government will meet with the private sector in the coming days, and the application of the Economic Reciprocity Law, sanctioned in April, is also being analyzed. The law establishes criteria for the suspension of trade concessions, investments, and obligations related to intellectual property rights, in response to unilateral measures adopted by a country or economic bloc that negatively impact Brazilian international competitiveness.
“The United States has a surplus with us in the trade balance, both in services and goods. Brazil is not a problem for the United States. The United States has a deficit in its balance. And Brazil and the United States have productive integration. We have 200 years of friendship with the United States. So, it is unjustified, and the economic world needs stability and predictability”, said Alckmin.
The US leader announced a 50% tariff on all products imported from Brazil. The information was conveyed through a letter to President Luiz Inácio Lula da Silva. The tariffs will take effect from August 1.
In the document, Trump justifies the measure by citing former President Jair Bolsonaro, who is a defendant in the Supreme Federal Court (STF) for attempted coup d’état. The US president also highlighted STF orders issued against supporters of the former Brazilian president who reside in the United States. Trump also cites alleged “insidious attacks by Brazil against free elections and the fundamental violation of freedom of expression of Americans”.
“The way Brazil has treated former President Bolsonaro, a highly respected leader worldwide during his tenure, including by the United States, is an international disgrace. This trial should not be happening. It is a Witch Hunt that must end immediately!”, Trump wrote.
Zero IPI
Alckmin also recalled the start of the application of zero Tax on Industrialized Products (IPI) for the sustainable car, a measure announced by President Luiz Inácio Lula da Silva last week, which removes the tax from the price of entry-level cars, making them cheaper.
“This can reduce the price of the entry-level car by R$ 10,000, R$ 12,000. It is an important measure that helps the population access that cheaper and sustainable car, a car that does not pollute. It prioritizes energy efficiency, sustainability issues, and is also social”, said Alckmin.
The decree signed by President Luiz Inácio Lula da Silva on Thursday (10) covers compact vehicles produced in Brazil with high environmental efficiency and is part of the National Green and Innovation Mobility Program (Mover), launched last year, aiming to decarbonize the country’s automotive fleet through tax incentives, especially regarding IPI rates.
To qualify for zero IPI, the sustainable car must meet four requirements: emit less than 83 grams of carbon dioxide (CO₂) per kilometer, contain more than 80% recyclable materials, be manufactured in Brazil (stages such as welding, painting, engine manufacturing, and assembly), and fit into one of the compact car categories (entry-level vehicles from the brands).
Source: Agência Brasil