[…] Despite Trump's effort to use the tariffs to alter the trajectory of a pivotal criminal trial, the range of exemptions came as a relief for many in Brasilia, who since Trump announced the tariff earlier this month had been urging protections for major exporters caught in the crossfire.
"We're not facing the worst-case scenario," Brazilian Treasury Secretary Rogerio Ceron told reporters.
Trump's executive order formalizing a 50% tariff excluded dozens of key Brazilian exports to the United States, including civil aircraft, pig iron, precious metals, wood pulp, energy and fertilizers.
[…] IMPACT SMALLER THAN EXPECTED
The effective tariff rate on Brazilian shipments to the U.S. should be around 30.8%, lower than previously expected due to the exemptions, according to Goldman.
Oil shipments to the U.S., which had been suspended, are set to restart after being spared, lobby group IBP said. Meanwhile, mining lobby Ibram said the exemptions covered 75% of mining exports.
However, it was still too soon to celebrate, said former Brazilian trade secretary Welber Barral, estimating that Brazil exports some 3,000 different products to the United States.
"There will be an impact," Barral said.
Trump's tariff exemptions did not shield two of Brazil's key exports to the U.S., beef and coffee.
Posted by rdfporcazzo
1 Comment
There is news about Trump’s tariffs on Brazil posted earlier, but it didn’t emphasize the exemptions.
Almost all the main trades were excluded from the American tariffs, the big exceptions are beef, coffee, and sugar. But these commodities aren’t as hard to reallocate to other countries as, for example, airplanes.
So not the worst case scenario indeed.
I’m particularly interested in how the Brazilian beef industry will adapt to the changes in trade. Will there be a country to absorb it? Will they provide better and cheaper beef at home? Let’s see.