Brazil demands that the United States take action on its May trade proposal after President Donald Trump introduced a 50% tariff on Brazilian goods which intensified economic tensions between the two nations. The Brazilian foreign and economic ministries issued a joint statement on Wednesday to express their strong disapproval about the move while maintaining their commitment to finding solutions that both parties can accept.
The U.S. government has not received or acknowledged the proposal which Vice President Geraldo Alckmin confirmed remains without response. The Brazilian letter sent on Tuesday stressed the immediate need to resolve disputes while presenting potential areas for compromise.
The new 50% tariff imposed by Trump starting August 1 has created worries among Brazilian export businesses. The Brazilian government predicted that the increased tariff from 10% to 50% would create damage to both economies while threatening the existing trade relationship which already shows persistent deficits. Brazil accumulated trade deficits amounting to $410 billion during the last 15 years with the United States.
U.S. Trade Representative Jamieson Greer initiated an investigation into Brazil’s trade practices because he deemed them unfair. Brazilian Solicitor General Jorge Messias described the investigation as a U.S. attempt to hide its weak arguments regarding the tariffs.
Brazil works to stop a major crisis from Washington’s strong protectionist policies which have already caused trade disputes with various partners.
