Who pays the account of Trump’s new fare? Brazil loses market, and prices can go up in the USA

50% tariff against Brazilian products worries national companies, the risk of losses and job loss. Measure also presses consumers in the US as it can make important foods, such as coffee and beef. Trump announces 50% import tariffs on all products in Brazil for ideological reasons the new 50% tariff against Brazilian products, announced by US President Donald Trump, should directly affect companies and producers of strategic sectors of the national economy, selling their products to Americans. This is the case of exporters of oil, steel, coffee and beef, for example, products that lead Brazil’s sales to the US. Orange and aircraft juice exports can also be strongly impacted. Another concern in Brazil is inflation. The financial market reacted poorly to the new rate and the dollar rose strong in the hours of Trump’s announcement. “If the dollar remains high, inflation in Brazil persists and the Central Bank keeps interest rates [atualmente no patamar de 15%, o maior em quase 20 anos]. This slows down the economy and can go into recession, “warns economist Robson Gonçalves, MBA professor at FGV. 🔎 Among other reasons, the high dollar generates inflation as imports make it expensive. The logic of the BC is that raising interest discourages because it is more expensive to make loans or time shopping. When reducing consumption, the demand for products decreases, which helps to control inflation, which Occurs when the offer does not follow the demand. Despite this, experts heard by G1 explain that Brazilian consumers are not the only ones who may feel the effect of the pocket, albeit on a lower scale. 8 million bags, according to industry groups. “Americans will look for other global producers [para substituir as importações brasileiras]But in the case of coffee, they will not find everything they need in the foreign market. And the price is already expensive at the international level, “says Gonçalves of FGV. See below for more details on the impacts of the new tariff for Brazil and the US. Stephanie Rodrigues/G1 Brazil Coffee Grain The US is the second main commercial partner in Brazil, behind only China. Data from the Ministry of Development, Industry and Foreign Trade (MDIC) pointed out that Brazil sold US $ 40.33 billion in products to Americans by 2024. ⚠️ Even so, Brazil have a commercial deficit compared to the US since 2009, that is, buy more than it sells to the country. [a partir de 1º de agosto]Brazil loses a lot of space within a superimportant commercial partner “, summarized economist Daniel Sousa, a commentator at GloboNews, in an interview with Podcast the subject. The Brazilian meat exporters’ association stated that the increase in fare disrupts trade and affects the productive sector. The sector assessment is that ox meat sales will be practically” unviable “if there is no negotiation. It is that Brazilian refrigerators are directed to other international markets, such as Asian. According to Daniel Sousa, there is already an attempt to diversify the destinations of Brazilian exports, as well as other American partners. It says Robson Gonçalves, from FGV. And, with the increase in supply in the domestic market, the consequence can be a drop in prices here. “If the dollar remains high, it can overshadow the effects of this increase in supply,” he should also affect Brazilian aircraft sales (Embraer actions have fallen more than 3% on Thursday) Engineering, wood, machines and engines, and electronics. (See the list here) remembering that, in addition to the rate announced this week, products such as steel and aluminum already face 50% fees, which has directly impacted by Brazilian coffee. Coffee, orange juice, sugar, beef and ethanol to the US, among other products. With the increase of the tariff, exporters tend to pass on to consumers. and, as in the case of coffee, the US will not always replace imports from Brazil. Only Brazil, but the entire US juice industry, which employs thousands of people and has Brazil as its main supplier for decades, “said Ibiapaba Netto, executive director of Citrusbr, the Brazilian Association of Orange Juice Industry. In this sense, the Association of Juice Exporters stated that the surcharge is terrible for the sector as a whole and that reaches the main Americans themselves as the main External Supplier. Beef has also been a problem. Product inflation for the American consumer is beating a historic reduction in the country, which has failed the price of the ox – it is costing twice as to the Brazilian ox. Total Imports of the United States in 2024. Therefore, the direct impact of the tariff on the American economy tends to be limited. Another issue that could impact the US in this context is that “the imposition of tariffs can cause other economic blocks to strengthen business relationships,” the US is more isolated. Art/G1 *with information from the Reuters news agency.

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