The Federation of Industries of the State of Rio de Janeiro, known as Firjan, said Tuesday that proposed U.S. tariffs threaten Brazilian exports.

This development signals a potential escalation in trade tensions between the two nations. Because the Rio de Janeiro industrial sector relies heavily on international trade, any increase in import costs could stifle local growth and discourage foreign investment.

The concern follows a preliminary recommendation from the Office of the United States Trade Representative to apply an additional tariff of 25% [1] on Brazilian exports. This recommendation is part of an ongoing investigation conducted under Section 301 of the U.S. Trade Act.

Firjan said that the measure could jeopardize the economic stability of the region. "A medida pode representar riscos para a indústria fluminense, os investimentos e a parceria econômica entre Brasil e Estados Unidos," a Firjan spokesperson said [1].

The industry group is calling for a diplomatic resolution to avoid the implementation of the tariffs. The organization said the need for technical discussions between the two governments to mitigate the impact on the private sector.

"Defendemos o avanço nas negociações bilaterais e reforçamos a importância do diálogo técnico entre governos, com participação do setor empresarial," the spokesperson said [1].

The Section 301 investigation allows the U.S. government to impose tariffs if it determines that the foreign trade practices of another country are unfair or burden U.S. commerce. If the 25% [1] levy is finalized, it would significantly increase the cost of Brazilian goods entering the U.S. market, potentially reducing the competitiveness of Rio de Janeiro's industrial output.

“A medida pode representar riscos para a indústria fluminense, os investimentos e a parceria econômica entre Brasil e Estados Unidos.”

The use of Section 301 investigations typically indicates a shift toward protectionist trade policies. If the U.S. implements these tariffs, it may trigger retaliatory measures from Brazil, further straining the bilateral economic partnership and disrupting supply chains for industries in Rio de Janeiro that are integrated with U.S. markets.