Brazil's Government Wants to Negotiate with Trump to Expand the List of Products Excluded from the 50% Tariff

Brazil’s Government Wants to Negotiate with Trump to Expand the List of Products Excluded from the 50% Tariff

Written by Fabio Lucas Carvalho

Published on 19/08/2025 at 20:29

Foto: REPRODUÇÃO

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Alckmin States That The US Tariff Is Unjustified And Advocates Expanding The List Of Brazilian Products Exempt From The Surcharge To Preserve Competitiveness.

Vice President Geraldo Alckmin stated on Tuesday that the federal government’s priority is to expand the number of Brazilian products excluded from the 50% tariff imposed by the United States.

The measure resulted from an executive order by President Donald Trump, which added 40% to the 10% already in effect since April.

Among the 4,000 items exported by Brazil, nearly 700 were exempt from the surcharge.

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Weight Of The Surcharge

The American tariff represents an immediate challenge for Brazil’s trade balance. Although nearly 700 items escaped the charge, thousands of other products now face heavier barriers.

The effect is felt mainly in industrial goods, which find an important destination for added value in the North American market.

The vice president emphasized that Trump’s measure is unjustified. The average rate applied by Brazil to American products is only 2.7%.

Furthermore, eight of the ten best-selling items from The United States to the country enter with a zero rate. For Alckmin, this disparity shows that the surcharge lacks a basis of reciprocity.

Trade Relationship

The United States is Brazil’s second-largest trading partner, behind only China, and is also the country’s main foreign investor, with about 4,000 companies established in national territory.

Currently, 12% of Brazilian exports are destined for the North American market, making the surcharge a central issue for economic policy.

Alckmin also reminded that the United States has maintained a surplus with Brazil for over fifteen years.

Last year, counting goods and services, the balance was US$ 25 billion in favor of the Americans.

Since 2009, the surplus reaches nearly half a trillion dollars. For him, this history is a solid argument for advocating greater openness to Brazilian exports.

Exclusion Negotiations

One of the main objectives of the government is to expand the list of Brazilian items exempt from the surcharge.

Today, nearly 700 products are already outside the 50% tariff, but the strategy is to negotiate for more sectors to be included.

This agenda includes discussions about double taxation, bilateral investments, and strategic minerals.

“With the United States, we can create a win-win situation, significantly increase investments here, our investments there, and advance in economic complementarity,” said the vice president.

Sectoral Impacts

The surcharge affects products from different areas of the economy, but the government is concentrating efforts on sectors with a higher value-added weight.

The focus is to preserve the competitiveness of Brazilian industries that have found a strategic market in the United States.

At the same time, there is concern about the maintenance of jobs linked to exports.

Experts note that measures of this type can generate cascading effects. Exporting companies reduce margins, cut production, or pass costs onto domestic consumers.

Therefore, the pressure for specific exclusions is growing among business associations.

Trump’s move occurs amidst a global debate on protectionism and trade disputes.

Although the United States has a deficit of US$ 1.2 trillion in its balance, only three countries in the G20 have a surplus with the Americans: Brazil, the United Kingdom, and Australia.

This condition makes Brazil a natural target in an agenda aimed at reducing deficits.

Brazil’s Government Wants to Negotiate with Trump to Expand the List of Products Excluded from the 50% Tariff

Alckmin States That The US Tariff Is Unjustified And Advocates Expanding The List Of Brazilian Products Exempt From The Surcharge To Preserve Competitiveness.

Weight Of The Surcharge

Trade Relationship

Exclusion Negotiations

Sectoral Impacts

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Brazil’s Government Wants to Negotiate with Trump to Expand the List of Products Excluded from the 50% Tariff

Alckmin States That The US Tariff Is Unjustified And Advocates Expanding The List Of Brazilian Products Exempt From The Surcharge To Preserve Competitiveness.

Weight Of The Surcharge

Trade Relationship

Exclusion Negotiations

Sectoral Impacts

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