In a recent announcement, Brazil's Finance Minister, Fernando Haddad, supported an increase in the tax on over one thousand imported products, which could rise up to 7.2 percentage points. This policy will impact various sectors, including technology and machinery, affecting consumers who rely on international purchases. Key items on the list include smartphones, as well as industrial machines like boilers, generators, turbines, and ovens.

Haddad emphasized that this measure aims to protect domestic production by regulating the market and minimizing competition from foreign imports. During an interview, he also noted that the measure includes provisions allowing the Ministry of Development, Industry, and Foreign Trade to make adjustments to the tariffs, potentially even revoking the increase if deemed necessary. This flexibility comes in response to criticisms from opposition parties who argue that the tax increase will burden consumers and businesses.

As Brazil grapples with economic challenges and strives to bolster its domestic industries, this move may resonate positively with domestic manufacturers and workers. However, the possible retaliatory effects on consumers and international trade relationships could pose significant risks, raising questions about the long-term implications of such protectionist policies.