Brazil Negotiates to Shield Key Exports from U.S. Tariffs
Brazil's government seeks exemption for food and Embraer aircraft from a proposed U.S. 50% tariff on Brazilian goods. Ongoing discussions involve Vice President Geraldo Alckmin and U.S. Commerce Secretary Howard Lutnick. Embraer faces potential order cancellations, while Brazilian food exports, notably citrus and coffee, risk market disruption.
Brazil is negotiating with the United States to exempt food products and Embraer aircraft from a proposed 50% tariff on Brazilian goods, insiders revealed on Tuesday. This request has dominated recent talks between Vice President Geraldo Alckmin and U.S. Commerce Secretary Howard Lutnick, aiming to protect critical sectors.
Despite official denials from Brazil's Development and Trade Ministry regarding specific negotiations, confidential sources confirmed the government's strategic focus on certain sectors. Embraer, a key player in global aviation, emerges as a top priority due to the potential repercussions on its U.S. operations.
The tariffs threaten to cripple Brazil's citrus and coffee industries, sparking fears among producers. Ports and Airports Minister Silvio Costa Filho expressed the government's commitment to supporting Embraer, potentially with financial backing. The situation underscores significant economic stakes tied to Trump's tariff proposal.
(With inputs from agencies.)
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