Trump's Trade Threats Loom: Brazil Braces for Potential Tariff Escalation in 2025 US Presidential Race
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Trump's Trade Threats Loom: Brazil Braces for Potential Tariff Escalation in 2025 US Presidential Race
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With the US presidential race heating up, many listeners are asking how a potential Trump administration could shake up international commerce, particularly with Brazil—South America’s largest economy and a crucial agricultural exporter. This week, Bloomberg reports that Trump is promising to revive tough tariff policies, targeting both friends and rivals alike. He specifically mentioned South American nations, including Brazil, as possible subjects of new tariffs on steel, aluminum, and even agricultural products, if elected.
Currently, the United States maintains a range of tariffs on Brazilian goods, especially steel and aluminum. Following Trump’s 2018 decision under Section 232 of the Trade Expansion Act, Brazilian steel to the US has mostly been subject to quotas rather than direct tariffs, while aluminum faces a 10 percent tariff. According to the US International Trade Administration, those measures technically remain in place, although volumes have shifted due to ongoing negotiations and Brazilian government pressure.
Meanwhile, Brazilian officials are closely monitoring Washington. Brazil’s Ministry of Foreign Affairs released a statement this week highlighting concerns that renewed tariffs and quota restrictions could hinder Brazil’s exports, particularly in agriculture and industrial metals. US soy imports from Brazil are also under the spotlight, as Trump’s campaign has floated the idea of retaliatory tariffs if Brazil boosts exports at the expense of US farmers, as reported by Reuters.
On the business side, US trade groups—like the American Farm Bureau and the Steel Manufacturers Association—are watching developments closely. They caution that any aggressive tariff escalation could spark a trade dispute, ultimately raising costs for both US manufacturers and Brazilian exporters.
In headline news, The Financial Times reports that Brazil’s government is preparing a contingency plan to counteract possible US tariffs, including options for reciprocal measures and diversification of export markets. Brazilian exporters are said to be on alert as the US election season stokes further policy uncertainty.
To recap, while there have been no new tariffs implemented this week, the threat of renewed trade friction is front and center, with both US and Brazilian officials and industries preparing for possible policy shifts. We’ll keep tracking developments and bring you the latest on Brazil-US trade and tariffs as the 2024 US election approaches.
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