São Paulo Governor Tarcísio de Freitas said Brazil must continue negotiating with the United States to reverse a new 25% [1] import tariff.
The dispute threatens the economic stability of Brazil's most industrial state. Because the White House imposed the duty on Brazilian products, local manufacturers face increased costs and reduced competitiveness in the North American market.
De Freitas said to CNN Brasil regarding the measures that took effect Wednesday, Oct. 22 [2]. He said that diplomatic engagement remains the only viable path to mitigate the economic impact on the region.
"por mais que tenha havido alguma negociação, ela não foi suficiente," de Freitas said, noting that previous attempts at negotiation were insufficient.
The governor said that the 25% [1] rate creates a significant barrier to trade. He said that the federal government must prioritize these talks to protect the industrial output of São Paulo, and the broader national economy.
While the specific products targeted by the White House were not detailed in the governor's remarks, the broad nature of the tariff suggests a wide impact across several sectors. De Freitas said that the current situation requires a more aggressive diplomatic strategy to ensure that Brazilian exports remain viable under the new U.S. trade regime.
“Brazil must continue negotiating with the United States to reverse a new 25% import tariff.”
The push for continued negotiations indicates a high level of concern within Brazil's industrial heartland regarding U.S. protectionism. If the 25% tariff remains, it could lead to a decrease in export volumes from São Paulo, potentially triggering a domestic economic slowdown or forcing Brazilian firms to seek alternative markets to offset losses in the U.S.
