Government expects Washington to send document on surcharges next week
According to Gazeta do Povo, the government awaits the American role in the coming days, with the segments that Washington would like to see benefit from lower rates.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM GAZETA DO POVO · 2 MIN
The Brazilian government awaits, in the next few days, the sending of a text from Washington with surcharges. The information is from Gazeta do Povo. According to Elias Rosa, from MDIC, the material should arrive from today until the following week. The data has weight because the United States had made a commitment to forward the proposal during a meeting held on September 30.
This meeting took place in Milwaukee, on the sidelines of the G20 trade holders conference. Mauro Vieira, from Itamaraty, and Elias Rosa spoke with Jamieson Greer, US Trade representative. As InfoMoney, Money Times and Estadão found, the agreed deadline for the Americans to send a preliminary draft of the understanding is four weeks.
The text must list the sectors in which the US intends to reduce tariffs. On the Brazilian side, the answer will come with conditions. Elias Rosa stated that there were informal conversations during the period, but he did not have details about their content, and said that the terms of the proposal were not anticipated. Furthermore, he rejected the idea that the American mid-term legislative elections could halt negotiations, even though Democrats have won control of the House and Senate.
The backdrop is a recent tariff escalation. The previous tariff reached 50% on some Brazilian products, but the Trump administration stopped applying it and created new surcharges. Among them is a 25% increase on some of the country's products, justified as a response to unfair commercial practices. The second amounts to 12.5% and affects Brazil along with 59 other countries, under the argument of combating forced labor. According to Gazeta do Povo, the two can accumulate.
What is at stake, therefore, is how this set of surcharges will be treated in the negotiation. The American proposal will define which sectors receive relief, and the Brazilian response will determine the counterparts. Until then, the government maintains that the calendar follows the commitment made in September.
What changes for the investor
For those who follow the stock market, dollar and interest rates, the central point is the list of sectors. It will show where the commercial relationship can change first, and exporting companies in these segments tend to react to any concrete signal. As the text has not yet been released, the market works with partial information, which tends to keep uncertainty high until publication. It is also worth noting that the addition of additional rates can change the bill for each product, so the effect tends to vary from case to case. This article does not provide an estimate of the impact on prices or a purchase or sale recommendation.
Automatically translated from Portuguese.
