Brazil Calls U.S. 50% Tariff Political as Ministers Detail Mitigation

Overview

• Finance Minister Fernando Haddad said the tariff against Brazilian products lacks economic rationale and reflects a political decision.
• Agriculture Minister Carlos Fávaro reported that exports were redirected to alternative buyers after the 50% levy and that the impact was smaller than feared.
• Fávaro said Brazil is prepared to face possible further U.S. retaliations and will respond with firmness while keeping dialogue open.
• Government data point to 437 new market openings over two years and nine months, with deeper outreach to regions such as the Middle East and Southeast Asia.
• Brasília activated support tools including a R$30 billion credit line, a special Reintegra for tax reimbursement, and public procurement under the Plano Brasil Soberano, while U.S. politician Marco Rubio urged additional sanctions tied to the STF conviction of Jair Bolsonaro.