Brazil Warns That A Trade Deal May Not Be Reached Before 50% Tariffs Take Effect August 1st – CoffeeTalk

Brazil’s Finance Minister Fernando Haddad acknowledged that a trade deal may not be reached by August 1, when President Donald Trump’s 50% tariffs on Brazilian goods are due to take effect. He stated that Latin America’s largest economy is still awaiting a response from Washington on trade proposals initially submitted in May. Trump announced the steep tariffs earlier this month, citing a “witch hunt” against former Brazilian president Jair Bolsonaro and trade practices he said were unfair.

Haddad said Brazil had contingency plans to deal with any potential tariffs and could redirect more than half its current U.S. exports to other markets. However, that would take time. The U.S. is a large buyer of Brazil’s oil, steel products, coffee, aircraft, and orange juice, but runs a trade surplus with the South American country, which Brazilian officials have used to label the threatened tariffs as unjustified.

Companies such as planemaker Embraer, which has the U.S. as its main market, would be hard hit by Trump’s move. The Brazilian government may need to support the sectors most affected by tariffs, but stressed that such measures would not necessarily incur larger primary spending.

President Luiz Inacio Lula da Silva has pledged to reciprocate like-for-like if tariffs take effect as promised, but Haddad said Brazil would not seek to punish U.S. companies operating in the country.

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