Brazilian government contests new 12.5% tariff imposed by the US

The Minister of Development, Industry, Trade and Services (MDIC), Márcio Elias Rosa, classified as "improper" the new 12.5% surcharge applied by the United States on Brazilian products. The measure, which goes into effect this Friday (24), is based on allegations by the US government regarding supposed failures in combating forced labor in Brazil, arguments that the minister categorically rejected, considering that they do not reflect the reality of the country.

The new tax rate is in addition to a 25% tax already in effect since the beginning of this week for various items. As a result, sectors such as footwear, machinery, equipment, apparel, and chemical products will face a cumulative taxation of 37.5%. The Brazilian government is still conducting a detailed survey of all products that will suffer this double taxation.

During a press conference, the minister defended the Brazilian policy of combating slave labor, highlighting that the country complies with international commitments and follows the guidelines of the International Labour Organization (ILO). According to Rosa, the American justification for the tariff is misguided and ignores the inspection and victim support mechanisms already established in Brazil.

Despite the impact on several industrial segments, the MDIC reported that about 2,000 products exported to the American market remain exempt from the new taxes. Among the items spared are beef, coffee, orange juice, and various fruits, which were not affected by either the previous tax or the new surcharge.

The Brazilian government reported that it will prioritize diplomatic dialogue with Washington, with plans to resume talks next month. However, the minister emphasized that Brazil does not rule out using the Economic Reciprocity Law, sanctioned this year, to respond to trade measures it considers unjustified.

To mitigate damages to exporters, the government made resources available from the Brasil Soberano program. The amount of R$ 18.5 billion is intended to support affected companies through credit for working capital, innovation, investments, and the opening of new international markets.