Few Brazilian companies will bring their assembly line to the United States as a way to alleviate the impacts of US government tariffs against Brazilian products. The evaluation is from the Minister of Labor and Employment, Luiz Marinho. For him, in this case, the negative effects on the country’s labor market will be diminished.
Already in the worst of the projected scenarios, based on a survey by the National Bank for Economic and Social Development (BNDES), the reduction of job vacancies would be a maximum of 320,000 in a stocated total of 48 million jobs.
“Let’s face it: it wouldn’t be the total disaster,” said Marinho, reiterating that this would be the scenario “if absolutely everything was wrong.” The statement was made on Thursday (21) during the program Good morning, ministerproduced by Brazil Communication Company (EBC).
One of the target goals applied by US President Donald Trump against imported products is to encourage companies to settle in US territory, generating jobs and riches to that country.
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Substitute Buyers
Marinho said that on the trips he and President Luiz Inacio Lula da Silva have done, heard testimonials from entrepreneurs who reported having found substitute buyers to flow the production that was intended for US buyers.
“The entrepreneur has to look at the market; a secondary market or another buyer. It may be that the other country will not eventually want to pay the same price paid by the Americans. But it is often preferable to have the slightest result than having a loss.” He added.
He recalled that public purchases will help, in particular, the food products industry for hospitals, school meals and prisons, for example.
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Special attention
According to the minister, the government will pay special attention to the sectors most affected by producing essentially to the US market.
“Of course some sectors will be strongly hit. Others will be slightly hit or will not be hit because they produce essentially to other markets or to the Brazilian market,” he said.
Asked about the risk of companies bringing assembly lines to the US, in order to alleviate the impacts of tariffs, he said he does not see “a great movement about this”, and that, in this case, “the impact on the labor market will be tiny”, because economy and job market live a good time in Brazil.
“With the measures and initiatives that the government is taking and with the dialogue with the Brazilian business community, we will be able to pass this process. And Brazil will be stronger after this process,” he added.
