Brazil's Vice President Geraldo Alckmin stated that the arms, machinery, engines, and lumber sectors are among those benefiting from a recent US Supreme Court ruling that invalidated certain tariffs imposed by Donald Trump.
On a recent press conference, Brazilian Vice President Geraldo Alckmin highlighted that sectors such as arms manufacturing, machinery production, engines, and lumber were notably favored by a ruling from the US Supreme Court that eliminated some tariffs implemented during Trump's presidency. This decision is crucial as it affects approximately 22% of Brazil's exports. Alckmin emphasized the significance of the ruling for the Brazilian economy, marking it as a turn in favor of certain industries that had faced previous tariff hurdles.
Alckmin further commented on Trump's newly announced global 10% tariff, suggesting that it would not significantly tarnish Brazil's competitiveness. He argued that while the new tariffs were a concern, Brazil's previous standing included an additional 40% tariff that severely hindered its competitiveness in international markets. By removing such tariffs, Brazil can potentially reclaim its footing, particularly in the referenced sectors that now have more favorable conditions to engage in trade with the United States.
Moreover, Alckmin downplayed the long-term implications of sectoral tariffs that will continue to impact other Brazilian exports such as steel, aluminum, and auto parts. He reassured that with the earlier tariffs in place, Brazilian industries faced an unequal playing field. The recent Supreme Court decision serves as a pivotal moment in reshaping trade relations between Brazil and the US, potentially leading to increased exports and economic growth in the affected sectors.
