The contingency plan to assist industries affected by the US tariff hike on Brazilian products should be ready by Tuesday (12), according to Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin.
He said the plan will include a “scale” to assess variations in export levels within the same sector, allowing relief measures to be more accurately targeted.
“[The contingency plan] was presented to President Lula, who finished reviewing it late last night. The president will make the final decision, and then it will be announced. If not tomorrow, then probably Monday or Tuesday,” Alckmin told reporters on Thursday (8) outside the Ministry of Development, Industry, Trade, and Services.
According to Alckmin, the plan aims to focus on the companies most impacted by the 50% tariff on Brazilian goods imposed by Donald Trump’s administration.
The vice president explained that a parameter will be established to evaluate the effect of tariffs on each sector, based on the share of exports to the United States.
“There are sectors where over 90% [of production] goes to the domestic market, with exports accounting for 5%, at most 10%. And there are sectors where half of production is for export. In some cases, more than half of exports go to the U.S.. Those are the most exposed,” he stated.
Citing the seafood industry as an example, Alckmin said the plan will distinguish between products with higher and lower exposure to the U.S. market.
“Sometimes within the same sector, there’s a difference between those who export more and those who export less,” he noted. “In the case of tilapia, most consumption is domestic, whereas tuna production is largely destined for export,” he added.
Meeting with U.S. Embassy Official
Alckmin declined to give details about a meeting he held with the chargé d’affaires at the U.S. Embassy, Gabriel Escobar, saying only that it was “very good.”
The meeting, which was not on the official agenda, took place in the afternoon. Earlier, Escobar met with Senator Nelsinho Trad, chair of the Senate Foreign Relations Committee, and later visited the Chamber of Deputies after leaving the ministry.
Footwear Industry Concerns
Before meeting with the U.S. diplomat, Alckmin spoke with representatives from the Brazilian Footwear Industries Association (Abicalçados). He said the footwear sector will be significantly affected by the tariff hike, especially due to the impact on leather, a key raw material.
“I just met with the footwear sector, Abicalçados. It’s also affected, and it employs a large workforce. But even more affected than footwear is leather. Over 40% of leather production is for export,” he said.
