The technical areas of the economic team and the Ministry of Foreign Affairs have completed the design of the contingency plan to help the sectors of the economy affected by the imposition of 50% tariffs by the United States, the Minister of Finance, Fernando Haddad said. The measures will be taken next week to President Luiz Inacio Lula da Silva.
“The technical area of the three ministries involved [Fazenda, Indústria e Relações Exteriores] will introduce me to the details tomorrow. Probably next week we must take to the president [Lula]”Said the minister, who did not advance details about any measure.
Prepared based on the parameters defined by Haddad and Vice-President and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin, the contingency plan still needs to be evaluated by Foreign Ministers, Mauro Vieira, and the Civil House, Rui Costa, before being sent to Lula, who will make the final decision.
Difficulties
Haddad reiterated that the government’s priority remains negotiating with the United States. The minister, however, admitted that the White House is banning any debate.
“Us [do Ministério da Fazenda] We are talking to the technical team of the Treasury Secretariat [estadunidense]But not with Secretary Scott Bessent, ”said Haddad. Alckmin has been able to talk to some American secretaries, but has not received answers from the White House.
“The information that arrives is that Brazil has a point, Brazil is right to want to sit at the table, but that the theme is very concentrated in the Advisory of the White House, hence the difficulty of understanding better what will be the movement [dos Estados Unidos]”Justified Haddad.
Despite the difficulties, the minister also stated to see space for negotiations with the country, based on the experiences of recently closed agreements with Vietnam, Japan, Indonesia and the Philippines. Haddad also cited advances in negotiations between the United States and the European Union as a factor that can stimulate Brazil.
“There have been good surprises compared to other countries in recent days. We may reach August 1 with some wave and some possibility of agreement, but to agree it must be two parts sitting at the table to reach a conclusion. You can’t anticipate a movement that doesn’t just depend on us, but Brazil has never left the trading table,” Haddad added.
Governors
The minister praised the initiative of governors to provide help to the sectors of the respective states affected by the tariff of the Donald Trump government. However, he said local aid measures have little reach in the face of the impact on Brazilian exports.
“All help is welcome, but they are slightly restricted movements, there is no reach, because a line of $ 200 million, you are talking about $ 40 million, while we are talking about $ 40 billion exports,” said Haddad.
The minister referred to a credit line of $ 200 million announced on Wednesday by the governor of São Paulo, Tarcísio de Freitas.
Despite the restricted range, Haddad recognized governors’ efforts to mobilize around companies and affected economic sectors.
“It is good to know that the governors are mobilized and finally realizing that it is a problem of the Brazilian state. It is good to note that they are changing their position, failing to celebrate a foreign aggression to Brazil. This is important: fall into real and abandon the initial movement they made of support for the tariff against Brazil,” he said.
