Sao Paulo (AP). President Donald Trump’s threat to increase import fees by 50% of Brazilian goods can increase breakfast costs in the US. Coffee and orange juice prices – two tufts of American morning diet – could be severely affected if by 1 August. It is impossible to agree.
Brazilian beef and regional aircraft companies are also among the products that can be affected by Trump’s decision on Wednesday, which Brazilian President Luiz Inácio Lula da Silva promised to distance himself on Thursday.
Trump’s step this time is openly political, directed at the Brazilian Supreme Court trial, former President Jir Bolsonar, his ally, who was accused of alleged role in an attempt to abolish his 2022. The loss of election. The trial for the US -based social media companies that did not comply with local laws also mentioned in a public letter as a reason to take Brazilian import taxes in the US.
The US Census Bureau said last year the country with Brazil had an excess of $ 6.8 billion.
Brazilian exporters, their bodies and politicians – many of whom are friendly with Bolsonar – criticized short and urged Lula to negotiate with coffee, beef and orange juice associations related to the nation’s defense.
“These new rates have a direct impact and have achieved Brazilian agrovers, which influenced currency course, increased costs of imported costs and Brazilian export competitiveness,” said the Brazilian Agrovers’ Caucasus in the Thursday’s report.
Failed breakfast
Lula said in an interview after a short step that the US has had excess trading with South American people over $ 410 billion over the last 15 years, of which Brazil -made orange juice and coffee that American consumers receive from many.
The habit of American coffee is almost dependent on imports. The official US government data shows that Brazil, the best coffee maker in the world, supplies about 30%of the American market and Colombia about 20%and Vietnam is about 10%. The global stock is now low due to climate -related pressure, which recently strained coffee prices.
Marcos Matos, Executive Director of Brazilian Coffee Exporters Board Cecafé, said April. The short starting 10% rate was not as catastrophic as some Brazilian competitors encountered even higher rates. For example, Vietnam started at a rate of 46%, now decreased to 20%. He believes that the increase in up to 50% is serious escalation.
“This will hurt us, coffee exporters in terms of jobs, income and expenses. And this will harm the American industry and the end consumer who will eventually pay more,” The Associated Press told The Associated Press. He added that the Minister of Agriculture Carlos Fávaro told him on Thursday that he was looking for alternative coffee exporters when negotiating with the US
Ibiapababa, director of Brazilian citrus juice exporters, said both countries would be affected because Brazil does not replace the market, which buys about 3 billion liters of orange juice each year, and the US is not enough at home.
“About 40% of Brazilian orange juice exports fall into the US, but about 60% of our orange juice imports are from Brazil. We are the largest partner in American companies producing their breakfast juice,” Netto said. “With the exception of several companies producing 100 % in Florida, each American brand depends on Brazilian orange juice for scale.”
Netto added that American brands can survive without Brazilian juice, but now “it will be much harder for them to force their business wheels without it.”
“They don’t have to find our product anywhere else. The American market is a traditional partner, we always fill each other. These additional rates in Brazil do not strengthen orange juice from Florida. They make the full juice industry weaker and increase the price of all breakfast in the US,” said Netto.
Both Matos and Netto say their producers want Brazilian Lula to follow diplomacy on the table until the end of the negotiations before entering the country’s mutual law.
Unlikely benefits then hot blow
When a short April For the first time, they presented their tariff plan, many in Brazil expected the country to be useful as it avoided the harshest fines for Canada, Mexico and China.
“We were left, so many people said that Brazil would eventually benefit,” said Marcos Jank, Sao Paulo Business School Insperes World Agrovers. “But with this 50% tariff hike, we are now facing one of the highest rates in the US. We moved to the loss position.”
Airline manufacturer Embraer is another Brazilian company that will be affected if new rates are applied, it says in a statement that it is “currently evaluating the potential impact on its activities” and whether the new measure is particularly affected by the Brazilian aviation industry. Investment Manager Analysts XP estimates 60% of Embraer revenue
“Any material impact will be examined during the interview of our second quarter-income conference scheduled for August 5,” the Embraer said in a statement. In addition, Embraer is actively communicating with the relevant authorities seeking to restore the zero import fee for the aeronautical sector. “
The Brazilian beef sector is also a painful strait after a brief report.
Roberto Perosa, president of the Brazilian Meat exporting industry, said he had met with US partners since Wednesday’s driving negotiations with Trump’s administration.
Perosa said the Brazilian beef industry was not a competitor of the US because the South American nation has offered a large production cycle in recent years, which helped American consumers buy cheaper products.
“We do not want the target of political disputes that are harmful to the Brazilian productive sector,” he said. “The boundaries of political actions cannot be related to the expense of the population of our country or the American population, which will pay the price at higher beef prices.”
Although Trump’s rates are considered politically motivated, Brazil tries to create commercial arguments to interrupt the ideological stalemate.
Luiz Rua, Secretary of Trade and International Relations of the Brazilian Ministry of Agriculture, said there may be opportunities to negotiate tariffs, indicating the US interest to the country’s ethanol market. In turn, Brazil is seeking a better chance of entering the US sugar market.
“This is part of our agricultural negotiations,” said Rua. “There are other discussions behind my portfolio covering industrial matters. All of this is placed on the table.”
