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A Decision Made By Donald Trump Promises To Directly Impact The Brazilian Economy. The President Of The United States Announced A New 50% Tariff On All Products Imported From Brazil
The trade between Brazil and United States suffered a severe blow this Wednesday (7/9). The American president, Donald Trump, announced the implementation of an additional 50% tariff on all Brazilian products exported to the USA. The measure takes effect on August 1st.
The USA is currently Brazil’s second largest trading partner, second only to China.
A change in export rules with such an important partner can trigger chain effects in the national economy.
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Direct Impact On Exports
The new tariff applies to all Brazilian products, not just steel or aluminum, as has occurred with previous measures.
This means that various sectors, such as textiles, food, and manufacturing, will be broadly affected.
In practice, a t-shirt produced in Brazil and exported to the USA for R$ 20 may cost R$ 90 in the American market after the tax.
With the new price, American retailers may prefer suppliers from countries like Vietnam, India, or Bangladesh, harming the Brazilian industry.
Reflections On The National Economy
With the loss of competitiveness, Brazilian factories may reduce production and lay off employees.
The drop in exports also impacts transportation and ports, decreasing the volume of cargo moved.
The dollar tends to rise, and the final effect falls on the Brazilian consumer: fewer jobs, less income, and an increase in inflation.
The 50% tariff announced by Donald Trump represents more than just a trade measure. It exacerbates tensions between the Brazilian and USA governments and directly affects the Brazilian worker.
