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Vice President Geraldo Alckmin Stated That Donald Trump’s Gesture to President Lula at the UN May Be the First Step to Reduce the 50% Tariffs Imposed on Brazilian Exports.
The Vice President of the Republic and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin, stated this Friday (26) that President Donald Trump’s gesture in greeting President Lula at the UN General Assembly represents a “first step” to overcome the deadlock created by the 50% Tariff imposed on Brazil.
In his participation at the IV Annual Meeting of the Center for Management and Public Policies of Insper in São Paulo, Alckmin emphasized that the Brazilian government is committed to “taking the subsequent steps” to seek an agreement that reduces the 50% tariffs applied against various domestic products.
According to him, the effort now is to transform the initial gesture into practical measures that alleviate the losses of Brazilian industry and agribusiness.
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Effort for Agreement with the United States
Alckmin said the immediate goal is to seek a solution for the tariff.
He highlighted the meeting between Lula and Trump in New York, albeit brief, as a sign of openness to negotiations. The expectation within the government is that the presidents will talk again soon, probably by phone or video conference.
During the event at Insper, the vice president stated that tariffs target strategic sectors of the economy, including road machinery, agricultural machinery, engines, meat, coffee, fish, and fruits. He emphasized that the government is working to remove as many products as possible from the list and to reduce the imposed rate.
Role of Business and Diplomacy
Before the meeting in São Paulo, Alckmin participated in the inauguration of a Latam hangar in São Carlos. At the event, he emphasized that Brazilian businesspeople played an important role in getting closer to Trump.
“President Lula has always advocated dialogue and negotiation. This has always been Brazil’s position. Brazilian business helped“, he stated.
For him, this participation was essential for the United States to take the first step toward revising its tariff policy.
Alckmin also stated that the trade relationship between the two countries should be understood as mutually beneficial. “An important step has been taken. Now, we will have new steps so that we can advance even further and achieve the win-win situation that international trade should be“, he declared.
Surplus and Strategic Importance
The vice president recalled that Brazil represents an opportunity for the United States, not a problem. He presented data on the trade balance to reinforce this argument: among G20 countries, the U.S. has a surplus only with the United Kingdom, Australia, and Brazil.
“The tariff makes no sense“, said Alckmin. He also highlighted that the United States is a significant buyer of higher value-added products, such as airplanes, automobiles, machinery, and engines.
Despite its importance, the vice president noted that Brazil has reduced its dependence on the U.S. over the decades. In the 1980s, 24% of Brazilian exports were destined for the U.S. Today, that share is at 12%, indicating a more diversified export profile.
Strategies to Minimize Impacts
Alckmin highlighted that the government is adopting measures to mitigate the negative effects of the tariff. Among them are the release of credit via BNDES to help companies seek new markets, the postponement of taxes, and government purchases of more impacted products.
He emphasized that, although the internal market may absorb part of the production, mainly of food, it will not be able to meet the volume of industrial products, such as machinery. Therefore, diversifying external markets is essential, especially in populous countries that offer expansion opportunities.
Dispute in the U.S. Supreme Court
Another point mentioned by Alckmin is the legal challenge to the tariff by U.S. companies. He recalled that companies from the United States have gone to court against the measure and that the final decision will rest with the Supreme Court.
While the process is ongoing, the Brazilian government is seeking alternatives to maintain the competitiveness of domestic products. “The strategy is to act quickly to resolve the issue and try to gain market share“, said the vice president.
Path Ahead
Alckmin concluded his statements by reinforcing that the government will continue to work on two fronts: strengthening the internal market and expanding diversification in foreign trade.
For him, Trump’s gesture opens the space for Brazil and the United States to advance in a more balanced and mutually beneficial relationship.
“Brazil has zero tariffs on products from the United States. Foreign trade should be win-win. We will work to make it so,” he stated.
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