President Trump is poised to impose some of the highest tariffs among trading partners on Brazil. Trump has been critical of the Brazilian government’s handling of former President Bolsanaro, who has been placed under house arrest amid Brazilian Supreme Court allegations that Bolsonaro plotted to overturn the 2022 election.
According to Reuters, “Unlike Mexico and Canada, which sell about three-quarters of their exports to the United States, Americans buy just 12% of Brazilian exports. By comparison, Brazil’s exports to China have doubled in value over the past decade, now accounting for 28% of the country’s total shipments.”
The increased tariff is set to take effect tomorrow (Wednesday) to the tune of 36% on a host of exports including energy, aircraft and commodities including orange juice, beef and coffee.
“Goldman Sachs maintained its projection for Brazil’s economy to grow 2.3% this year in light of the “notable” exemptions, adding that government support for affected sectors, expected in the coming days, should further soften the economic blow,” according to Reuters.
