In an interview on Globo’s Mais Você program on the morning of July 31, 2025, Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, addressed the imposition of a 50% tariff on Brazilian products by the United States, announced by the Trump administration. The measure, affecting 35.9% of Brazil’s exports, was deemed unfair by Alckmin, who highlighted the U.S. trade surplus with Brazil and the need for dialogue to mitigate impacts. The tariff, set to take effect next week, spares 45% of Brazilian products, such as airplanes and orange juice, but raises concerns for sectors like coffee and beef. Alckmin emphasized Brazil’s sovereignty and openness to negotiations, as the Lula government seeks new markets and strategies to protect jobs and the national economy.
Alckmin’s remarks followed a meeting with President Lula and Supreme Court justices the previous night, where a document was drafted affirming the independence of Brazil’s branches of government. The vice president criticized linking the tariff to Brazilian judicial decisions, such as the application of the Magnitsky Act against a judge, and underscored the 200-year friendship with the U.S., which should be preserved through commercial convergence.
- Key points from the interview:
- 50% tariff impacts 35.9% of Brazilian exports.
- 45% of products, like airplanes and orange juice, are exempt.
- Brazil seeks dialogue with the U.S. and new markets for coffee and beef.
- National sovereignty is non-negotiable, per Alckmin and Lula.
Brazil, the second-largest trading partner of the U.S. after China, now faces the challenge of maintaining competitiveness in the global market while negotiating with U.S. officials, such as Commerce Secretary Howard Lutnick, to reduce the tariff’s impact.
Response to the U.S. tariff
The 50% tariff announced by the U.S. has sparked concern in Brazil’s export sector, particularly in industries like coffee, beef, and fruits, which heavily rely on the American market. Alckmin noted that the U.S. enjoys a trade surplus with Brazil, exporting more than it imports, making the tariff unjustified. He pointed out that eight of the top 10 U.S. products exported to Brazil face zero tariffs, while Brazilian goods encounter growing barriers.
The vice president called the measure a “lose-lose,” raising prices for U.S. consumers on products like coffee and fruits while threatening jobs and growth in Brazil. Negotiations, he said, are just beginning, with Brazil focused on protecting the 35.9% of exports affected.
- Most impacted sectors:
- Coffee: Brazil, the world’s largest producer, seeks to maintain U.S. market access.
- Beef: Mass exports to the U.S. may shift to other markets.
- Fresh fruits: Mangoes and other fruits face the new tariff.
- Manufacturing: Machinery and engines with reduced margins.
Strategies to mitigate impacts
Alckmin revealed that Brazil is working on two fronts: intensifying negotiations with the U.S. and diversifying markets. The exclusion of 45% of products, such as airplanes and orange juice, resulted from extensive talks with U.S. officials, and Brazil aims to expand these exemptions. Additionally, the vice president stressed the importance of exploring alternative markets, like China, already the largest buyer of Brazilian goods.
President Lula, according to Alckmin, maintains a firm yet open stance, rejecting any interference in Brazil’s sovereignty. The strategy includes high-level talks, with ministers like Fernando Haddad and Mauro Vieira engaging their U.S. counterparts.
- Brazilian government actions:
- Ongoing negotiations with U.S. Commerce Secretary Howard Lutnick.
- Pursuit of new markets for products like coffee and beef.
- Job preservation through support for exporting companies.
- Reinforcement of national sovereignty against external pressures.
Alckmin also noted that products shipped by August 6 will not be taxed, giving Brazil a week to intensify negotiations.
Brazil-U.S. trade history
The trade relationship between Brazil and the United States spans over 200 years, marked by strategic partnership. Alckmin noted that the U.S. is Brazil’s largest investor and the primary destination for manufactured goods, like airplanes and machinery. However, the trade balance favors the U.S., which exports more to Brazil than it imports, with a significant surplus.
The 50% tariff contrasts with Brazil’s open market, which applies zero tariffs to 80% of the top U.S. products imported. Alckmin highlighted that in the 1980s, 24% of Brazilian exports went to the U.S., compared to 12% today, showing market diversification.
- Bilateral trade data:
- U.S.: Brazil’s second-largest buyer, behind China.
- U.S. surplus: Exports to Brazil exceed imports.
- Exempt products: Airplanes, orange juice, and pulp (45% of exports).
- Affected products: 35.9% of exports, like coffee and beef.
Negotiations and national sovereignty
During the interview, Alckmin reiterated that Brazil will not accept pressures that violate its sovereignty, particularly attempts to tie tariffs to judicial decisions, such as the Magnitsky Act’s application against a Brazilian judge. He noted that the three branches of government—Executive, Legislative, and Judiciary—issued a joint document supporting Justice Alexandre de Moraes, reinforcing judicial independence.
The vice president compared the situation to Brazil hypothetically interfering in U.S. Supreme Court rulings, calling it unjustifiable. He insisted that Brazil remains open to dialogue but will not compromise its autonomy.
- Brazil’s stance:
- National sovereignty is non-negotiable, per Lula and Alckmin.
- Joint document from the three branches supporting the Judiciary.
- Dialogue with the U.S. based on trade convergence.
- Rejection of interference in Brazilian judicial decisions.
Outlook for the export sector
The Brazilian government is optimistic about the 2025 agricultural harvest, expected to be 10% larger due to favorable weather conditions. Alckmin highlighted that the dollar’s drop from R$ 6.20 to R$ 5.59 could ease inflationary pressures and boost export competitiveness. Sectors like coffee and beef, though impacted, have potential to tap new markets, such as China, which already absorbs much of Brazil’s output.
The vice president also expressed confidence that the tariff pressure can be reversed through strategic negotiations, preserving jobs and the national economy. He emphasized Brazil’s goal to expand trade with the U.S., aiming for a “win-win” rather than the current “lose-lose.”
- Opportunities for Brazil:
- 10% larger agricultural harvest in 2025 due to good weather.
- Falling dollar boosts exports and curbs inflation.
- Market diversification to offset tariff impacts.
- Talks with U.S. big tech for investments.