Former Central Bank president and former Finance Minister Henrique Meirelles was the interviewee today in BandNews afternoon. He reverberated Donald Trump’s decision to retreat in the taxation of Brazilian products. In the list of items that have escaped the 50% tax are orange juice, iron ore, steel products, oil and airplanes. Wooden articles, as well as paper and pulp were also contemplated.
For Meirelles, the measure is “strong” and highlights the “Trump style” of negotiation, but is also part of a broader scenario of inflationary pressure.
“Of course, there are negative components there that are, for example, the increase in price, some inflationary pressure in the United States and the decrease in the pace of activity exactly because of this reemption of the products. So much so that the US Central Bank Reserve has now had difficulty deciding how to act, because there is a threat of a fall in activity and even a possibility of a recession, and on the other side, the inflationary component, ”said the former minister.
Even so, Meirelles does not bet on a tariff route adjustment by August 6, when the surcharge should start to be valid.
“I find it unlikely, but it is a matter of guess, that there is a substantial modification until the date of effective implementation of these rates. For a very simple reason, I think to avoid this type of discussion, Trump anticipated the decree setting the tariffs so that it has an even stronger role of negotiation.”
The former BC president argued that the government “is doing the right thing” in negotiating and pointed out that tax reduction can be the key to helping sectors most affected by the tariff
“What the government can do is exactly to relieve the fiscal burden of these companies so that they have a greater financial capacity to redirect their production to other markets.”
Credits: Matheus Carvalho
