Brazil Resumes Tariff Negotiations with the U.S.

Brazilian President Luiz Inácio Lula da Silva and U.S. President Donald Trump have agreed to resume technical negotiations regarding tariffs on Brazilian products. The two leaders discussed tariffs, bilateral relations, and international issues during a phone call on the 21st. Lula argued that the reasons for imposing tariffs based on the U.S. Trade Representative's (USTR) investigation are "groundless," while Trump emphasized the importance of maintaining trade relations between the two countries and suggested a prompt reconvening of the technical teams. The USTR announced on July 15 that it would impose a 25% tariff on certain Brazilian products, which affects 23.1% of Brazil's exports to the U.S. Of this, 4.7% will be subject to a 12.5% tariff, and 1.9% will face a 25% tariff. The remaining 16.5% will be subject to both measures, resulting in a cumulative tariff rate of 37.5%. Brazil requested consultations with the United States at the World Trade Organization (WTO) on July 27, claiming that the U.S. measures violate GATT 1994 and the DSU. The Brazilian industry is concerned that these tariffs could burden exports and industrial competitiveness. However, the Brazilian Coffee Exporters Council stated that coffee has been excluded from the tariff targets. The technical teams of both countries are expected to discuss the tariff issue again.

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