SAO PAULO - Brazilian political leaders and business groups have reacted strongly against the US announcement of a tariff hike and the sanction against a Brazilian Supreme Court justice, vowing to use "legal tools to defend sovereignty" while introducing support measures for sectors affected by the new tariffs.
The US government on Wednesday announced that it would impose tariffs of up to 50 percent on Brazilian exports and sanction Alexandre de Moraes, a justice of Brazil's Federal Supreme Court currently overseeing the case against former President Jair Bolsonaro.
According to a statement from the White House, the new measure adds 40 percentage points to an existing 10 percent baseline tariff. Major Brazilian exports, including coffee and meat, are expected to be significantly impacted. However, certain key products such as orange juice, iron ore and civil aircraft have been granted exemptions or partial relief.
Brazilian President Luiz Inacio Lula da Silva issued a statement on Thursday, condemning what he described as "unacceptable interference" in Brazil's judicial system. He stressed that while Brazil remains open to dialogue on bilateral trade, the country "will never give up the legal tools to defend its sovereignty".
Calling the tariff hike "unjustified", Vice-President and Minister of Development, Industry, Trade and Services Geraldo Alckmin confirmed that around 36 percent of Brazil's exports to the United States would be subject to the full 50 percent rate.
He added that approximately 44 percent of the 700 items traded between the two countries were granted exemptions or partial relief.
Reiterating the government's commitment to supporting affected sectors, the vice-president said: "We are working to ensure that Brazilian companies have the necessary tools to withstand the impact of these unjustified tariffs."
Finance Minister Fernando Haddad said the government will soon announce a response plan focused on providing financing assistance, deferring tax payments, accelerating export tax refunds, and reactivating labor protection policies.
The National Confederation of Industry has also submitted eight proposals to the government, including low-interest emergency credit lines ranging from 1 to 4 percent annually, extension of export financing contracts, and reinstatement of the Employment Protection Program, aimed at minimizing the effects of the US tariffs.
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Business leaders and officials have warned that the new tariffs could disrupt trade flows, reduce employment, and strain industrial supply chains, particularly in the agricultural and manufacturing sectors.
