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The 25% tariffs recommended by the USTR have not yet been applied, and the Brazilian government is trying to use the deadline until July 15 to maintain talks with Washington, present tariff concessions, and seek a solution that respects Mercosur rules.
The 25% tariffs on Brazilian products can still be negotiated before they come into effect on July 15, the date set by the USTR, while Itamaraty and Planalto seek to avoid or soften the United States’ measure.
Government still bets on negotiation
Despite the preliminary report from the White House Trade Representative’s Office, Brazilian authorities involved in talks with Washington believe there is still room for negotiation. The document was received as direct pressure in the final stretch of the negotiations.
The recommendation to apply 25% tariffs raised the alert level in the Lula government but did not end the conversations. Itamaraty considers that the very definition of a deadline for effective application opens space for new diplomatic moves.
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25% tariffs enter the bilateral table
After almost a year negotiating the so-called tariff hike with the Donald Trump administration, Planalto and Itamaraty are still working on the possibility of reversing or softening the rates. The internal assessment is that the measure is not yet finalized.
At the end of last week, the Ministry of Development, Industry, Commerce and Services presented the United States with a proposal to reduce Brazilian tariffs on American products. It was the first time the topic entered bilateral talks on concrete terms.
The proposal was considered timid by the negotiators themselves, but it opened a formal discussion front. For the Brazilian government, the rules of Mercosur limit the next steps and need to be respected until there is new progress in direct trade negotiations with Washington.
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