US export tariffs over Brazil's economy

In a move that threatens US and Brazil’s strong and enduring cooperation, the president of the United States Donald Trump announced on this Wednesday (16/07) a radical measure targeting Brazil’s economy of increasing American export tariffs in over 50%; 

The decision sparked many discussions considering the long-standing relationship between Brazil-US, notably considering Brazil maintained one of the lowest tariff rates applied by the United States. Yet, disagreements between the US and Brazil have already been visible after Trump’s election and his clear antagonism with Brazil’s current president Luis Inácio da Silva, political opponent to right-wing candidate Jair Bolsonaro.  

The implementation of this policy was announced in a letter sent to the Brazil Government where Trump clearly rebukes STF ( Brazil's highest court, responsible for constitutional matters and the country's equivalent of a supreme court) judgment to the Bolsonaro involvement in orchestrating the 7 of January, a episode where Bolsonaro supporters tried to overthrow the government, vandalized congress properties and tried to push military intervention, leading him to become ineligible for the next elections. Trump in the letter affirms that STF punishment against the former president is a “disgrace” and mentions how Bolsonaro was a fighter and martyr for the Brazilian people. 

Although this policy has not been formally established, the Brazilian president already sees its implementation as a reality and has been working on the approval of reciprocity by also increasing Brazil exportation tariffs to America. In public surveys, over 79% of Brazilian interviews believe that the tariff will deeply affect their work. As Brazil’s second largest partner, this move will likely have a significant impact on Brazil 's economy and future diplomatic relations if this policy truly becomes formalized. 

By Arthur Kneip Rezende Auton