Representatives of US multinationals operating in Brazil met on Wednesday, 16, with Brazilian government officials to discuss alternatives to the 50% rate announced by former US President Donald Trump about Brazilian products.
The meeting, led by Vice-President and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin, was attended by executives from Amazon, Coca-Cola, General Motors, Caterpillar, Medtech, Dow, John Deere, among others.
The meeting was held under the Interministerial Trading and Commercial and Commercial Trading Committee, created to coordinate Brazil’s response to the commercial barriers imposed by Washington. Also present were representatives of the American Chamber of Commerce for Brazil (AMcham Brazil) and US Chamber, which expressed support for a negotiated solution between the two countries.
In a joint statement, the two entities stated: “Both Amcham and US Chamber made a joint note. And in this note, they put their position favorable to negotiation and that the issue of rates can be reviewed,” Alckmin reported during the meeting.
He also highlighted the warning contained in the text: “The imposition of tariff measures in response to broader political issues has the potential to cause serious damage to one of the most important economic relations in the United States, as well as establishing a worrying precedent.”
According to Alckmin, the position of companies shows that there is interest on both sides to avoid commercial losses. “It’s a loser,” he said. “We want everyone to resolve this issue. And companies play an important role, both Brazilian, who have industry in the United States and US companies.”
During the meeting, the vice president cited the historical bonds of large corporations with Brazil. “General Motors celebrated this year, I participated in its centenary in Brazil. Johnson & Johnson is 90 years old, Caterpillar is 70, many of them export to the United States.”
The Gov agency, which released details of the meeting, said the Brazilian government recently sent a new letter to the US Administration, reiterating the willingness for a consensual solution.
“The letter was confidential to the United States enumerating a set of items that could advance in the trade agreement, always trying to stimulate trade agreement, stimulate economic complementarity and growth of foreign trade, which is employment and income,” said Alckmin.
The president of AMcham Brasil, Abrão Neto, reinforced the position of the business sector. “Our desire, which is a feeling, I think, unanimous in the business sector here in Brazil, it is to seek to build a negotiated solution between the two governments and that happens to prevent a tariff increase,” he said. “The Brazilian and American business sector has sought to contribute to the Brazilian government and also contribute to the American side, bringing these their perceptions,” he added.
Government data show that approximately 10,000 Brazilian companies currently export to the United States. This activity is associated with the generation of about 3.2 million jobs in Brazil. The new 50%tariff, scheduled to take effect on August 1, can directly impact this flow of commerce.
Alckmin also commented on US investigation based on section 301 of the 1974 Commerce Law, which serves as a legal basis for the imposition of retaliatory measures. According to him, Brazil is ready to provide all the necessary clarifications. “Several of the topics raised in the investigation have been seriously faced by the Brazilian government,” he said.
In addition to the debate on the tariff measure, the meeting was also marked by demonstrations of the Brazilian government in favor of expanding trade relations with the United States, provided that these relationships remain in balanced conditions and without political interference.
The participation of US companies with a strong presence in Brazil reinforces the bilateral effort to avoid economic impasse. The presence of multinationals such as Amazon, General Motors, Coca-Cola, Dow, Corteva Agrisc, Sylvamo, Caterpillar, Medtech and John Deere was interpreted as a pressure gesture about the American administration to adopt a more flexible approach.
With the rate of tariff implementation approaching, the joint mobilization between private sector and authorities from both countries appears as an attempt to avoid climbing on commercial tensions. Negotiation is expected to advance in the coming weeks, with the objective of preserving the exchange between two of the largest economies on the continent.