Trump announced tariff after BRICS summit and took Brazil’s diplomacy by surprise; understand

Representatives from 20 countries gathered in Rio de Janeiro at an event that provoked reactions from the president of the United States. Taxation caused ‘perplexity’ in Itamaraty. Donald Trump Will Oliver/Pool/EPA/Shutterstock via BBC’s decision to impose a 50% rate on all Brazilian products imported by the United States was announced days after the BRICS summit in Rio de Janeiro. Representatives from Brazil, Russia, India, China and South Africa and 15 other countries attended meetings in the state capital, in which multilateralism was one of the most used terms by leaders. Participants also discussed topics such as cooperation between so-called global south countries, partnerships for social, economic and environmental development, and the search for renovations in the world governance system to expand the participation of emerging countries and there was a discussion about a more autonomous monetary system compared to the dollar, which was interpreted by the Americans as a threat to US currency. The event in Rio provoked Donald Trump’s reactions, which, last Sunday (6), threatened to tax “any country that aligns with BRICS anti -American policies” with an additional 10%tariff. Three days later, on Wednesday (9), the president of the United States sent a letter to Lula and announced a 50% rate on Brazilian products. The new rate is scheduled to take effect on August 1. The measure took the Brazilian diplomacy of “surprise” and caused “perplexity” in Itamaraty, which evaluates that they did not take attitudes that justify commercial friction between Brazil and the United States. The Brazilian embassy in Washington, for example, was informed of the decision only after Trump’s public announcement. Haddad ideological motivations says he does not see ‘economic rationality’ in Trump’s decision on expert tariffs state that Trump’s imposition of tariffs is predominantly political and ideological in nature. The measure is part of a strategy, used in Trump’s election campaign, with the aim of reinforcing his US industry protection speech. Donald Trump’s letter about the fares sent to President Lula has references to an alleged “persecution” to former President Jair Bolsonaro and his allies for Brazilian justice. Bolsonaro is a defendant in the Supreme Federal Court (STF) for attempted coup. In addition, in two judgments of 2023, the Superior Electoral Court made former President Jair Bolsonaro ineligible for 8 years, due to abuse of political power and misuse of media. Trump’s letter also mentions “censorship” against technology companies in Brazil. Reactions Faced with Trump’s announcement, Itamaraty has summoned the US diplomatic representative in Brazil to ask for explanations about the measure. To the US diplomat, the Brazilian government said Trump’s letter was offensive and unacceptable. The document was then returned to the US representative. In addition, ministers of the Brazilian government, such as Fernando Haddad, publicly expressed that they did not see “economic rationality” in Trump’s decision, classifying it as a political decision. According to the Minister of the Civil House, Rui Costa, the Brazilian government will create a working group to study eventual retaliation for the 50% tariff about exports from Brazil to the United States. According to Rui Costa, this group will also be responsible for studying new markets – a way to compensate at least part of the fare losses if it is maintained. The diplomatic channels will also remain open and the Brazilian government will negotiate until August 1. Infographic – Understand 50% rate announced by Trump to Brazil and the economic relationship with the US. Art/G1

Source link