Brazil-U.S. Prepare for High-Level Talks on Trade Tariffs with Industry Optimistic
Brazil and the U.S. are set for upcoming talks on rolling back trade tariffs and sanctions, with Brazilian industry leaders expressing cautious optimism about positive outcomes.
- • Brazil plans a high-level meeting with the U.S. next week to negotiate tariff reductions and sanction removals.
- • Current U.S. tariffs on Brazilian products at 40% may be reduced back to 10%, aiming to restore earlier trade terms.
- • Brazil seeks lifting of U.S. sanctions on officials, including Supreme Court Minister Alexandre de Moraes.
- • Gerdau's CEO states that tariff easing would positively impact Brazilian industrial clients who export to the U.S.
- • Industry leaders report decreased steel orders due to tariffs, anticipating improvement if trade relations normalize.
Key details
Brazil is gearing up for a significant meeting with the United States as soon as next week, aimed at negotiating reductions in trade tariffs and resolving sanctions issues. Sources inside President Lula's government indicate the talks could occur in Washington within 15 days, coinciding with the COP30 climate summit in Belém do Pará. Key Brazilian representatives potentially attending include Vice President Geraldo Alckmin, Foreign Minister Mauro Vieira, and Finance Minister Fernando Haddad. The main focus will be on lowering the current 40% U.S. tariffs imposed in July back to the 10% rate set earlier in April, before tensions escalated under the Trump administration. Brazilian officials expect the U.S. side to seek concessions on various fronts, including big technology companies and rare earth elements. Additionally, Brazil is pressing for removal of sanctions under the Magnitsky Act against certain officials, including Supreme Court Minister Alexandre de Moraes, with early indications suggesting U.S. willingness to reconsider these measures. Meanwhile, industrial leaders in Brazil express optimism about the pending agreement. Gustavo Werneck, CEO of steelmaker Gerdau, highlighted that while his company does not export steel directly to the U.S., the easing of tariffs would benefit their Brazilian clients who export machinery and equipment to America. Werneck noted that these clients have faced reduced orders due to the 50% tariff imposed by previous U.S. policy, adversely affecting Gerdau's steel sales as well. Rafael Japur, Gerdau's financial director, emphasized the deep interdependence with industrial clients, particularly in the auto parts sector, who have curtailed steel purchases amidst tariff barriers. The executives agreed that improving Brazil-U.S. trade relations would enhance volumes and operational performance for Brazilian industry. The forthcoming negotiations thus blend diplomatic efforts with tangible industry impacts, marking a hopeful chapter in bilateral economic relations.