Brazil’s Vice President Geraldo Alckmin said this Saturday (23) that Brazil will overcome the trade dispute sparked by the tariff hike imposed by the United States, noting that the country is less dependent on the U.S. market than it was in past decades.
“We’ll move past this. In the 1980s, 24% of our exports went to the U.S., almost a quarter. Today, it’s just 12%. And what’s affected by the tariff hike is 3.3%,” said Alckmin, who also serves as Minister of Development, Industry, Trade and Services. He spoke during a political roundtable organized by the Workers’ Party in Brasília.
Key sectors affected: manufacturing, textiles, machinery
Alckmin noted that around 36% of Brazil’s current exports to the U.S. are hit by the new 50% tariff, with the most affected sectors being machinery, equipment, footwear, and textiles.
“These are the hardest hit. When it comes to food, beef, for example, if we don’t sell to the U.S., we’ll find other markets. The same with coffee. But with manufactured goods, it’s harder to reallocate. It takes longer,” he explained.
Alckmin has been Brazil’s lead negotiator in trade talks with Washington, and emphasized that 42% of Brazilian exports to the U.S. were not subject to the new tariff, while another 16% were taxed under broader global measures, such as those affecting steel, aluminum, and copper.
Brazil to focus on new markets and regional trade deals
To offset the impact of the tariff hike, Brazil aims to diversify its export markets, said Alckmin. He cited ongoing efforts to finalize the EU–Mercosur agreement by the end of the year, as well as deals with EFTA countries (Iceland, Liechtenstein, Norway, Switzerland), Singapore, and the UAE.
The government also announced domestic measures to support affected exporters, including new credit lines, suspension of import taxes on inputs (drawback mechanism), and increased federal tax refunds for impacted companies.
WTO case filed against US tariffs
On the international front, Alckmin confirmed that Brazil filed a formal complaint with the World Trade Organization (WTO) and may pursue additional legal actions in U.S. courts.
“You can’t use regulatory policy for political or partisan reasons,” he said, referring to the Trump administration’s decision to reinstate and expand tariffs.
Brazil’s foreign ministry is currently reviewing the legality of the U.S. actions under WTO rules, and has not ruled out further dispute settlement procedures.
