Alckmin criticizes the US's 'unjustified' and 'unfair' tariff hike and says Lula's order is for 'permanent dialogue and negotiation'.

247 - In a ministerial meeting this Tuesday (26), the vice-president and minister of Development, Industry, Trade and Services, Geraldo Alckmin (PSB), criticized the so-called “tariff hike” by the United States on Brazilian products and stated that President Luiz Inácio Lula da Silva’s (PT) determination is to maintain “permanent dialogue and negotiation” to reverse the measures. The statements were made in a speech during the ministerial meeting.

Right from the start, Alckmin classified the surcharges as "unjustified" and "unfair," detailing, based on official government data, the percentages and sectors affected. According to the vice-president, the government's directive combines defending the national interest with preserving jobs and supporting exporting companies.

According to Alckmin, a significant portion of Brazilian sales to the US are outside the general 40% tariffs, while another part has migrated to the global Section 232 rule—applied indiscriminately to several countries—which reduces the competitive impact on Brazil. “The latest figure we have is that 41,3% are excluded from the 40% tariff. These are products that have been excluded. Airplanes, orange juice, ferroalloys… 23,2% are in the so-called Section 232. It's a section where we are all in the same boat worldwide. Steel, aluminum, and copper, 50%, but for the whole world. We haven't lost competitiveness,” he stated.

The vice-president emphasized that, in the case of automobiles and auto parts, the 25% rate also applies "to the whole world," and detailed the most sensitive core of the measures. "There we really have 35,6%, which unjustifiably includes 10% plus 40%, resulting in the 50% tariff increase. Then there are foods, such as coffee, meat, fish, fruits, industry, machinery and equipment," he said.

Alckmin also reported a recent advance in favor of Brazil, following communication from the US Department of Commerce. “Last week we had good news, because the [US] Department of Commerce said, 'look, anything containing steel and aluminum will be reclassified under Section 232.' So a machine, a motorcycle, a piece of equipment, as soon as that steel or aluminum content is reclassified under Section 232, we become the same as the rest,” he stated. According to him, this reclassification affects approximately US$2,6 billion — equivalent to 6,4% of Brazil's sales to the US in 2024, which totaled US$40,4 billion last year.

In criticizing the economic basis for the surcharges, the vice president presented figures on bilateral trade. “It’s totally unjustified, because out of the 20 G20 countries, the United States only has a trade surplus with three: Brazil, the United Kingdom, and Australia. And this year our exports to the United States grew by 4,2%, and theirs to us by 12,6%. It’s something totally out of line,” he pointed out.

Alckmin stated that President Lula's directive is to insist on diplomatic channels, preserving institutional principles and sovereignty. "President Lula has been guiding us towards permanent dialogue, sovereignty – Brazil will not relinquish its sovereignty – the rule of law, the separation of powers – which is a fundamental element of the rule of law – and, at the same time, negotiation and dialogue so that we can correct this absolute distortion of regulatory policy," he said.

As a domestic countermeasure, the government is activating a support package for affected companies and stimulating external competitiveness. “The Sovereign Brazil Plan was launched, offering R$ 40 billion in credit with lower interest rates, a guarantee fund – FGO, FGI and FGCE –, extended drawback, and the Reintegra program for small, medium and large companies that export to the United States, which will have 3% credit to open new markets,” he detailed. The vice-president informed that, “in a little while,” he would be traveling with the Minister of Planning, Simone Tebet (MDB), and the Minister of Agriculture, Carlos Fávaro (PSD), for meetings in Mexico to explore “opportunities in the agricultural, biofuel, aviation, energy, and industrial sectors,” accompanied by “almost 100 Brazilian businesspeople.”

In closing, Alckmin reinforced the diagnosis and strategy: “I want to highlight the unjustified and extremely unfair American measure. And President Lula's willingness to engage in permanent dialogue so that we can correct this issue. Meanwhile, a focused, specific, and temporary measure to support businesses and preserve jobs.”