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Bolsonaro's Arrest Deepens Brazil's Tariff Standoff With Washington
(MENAFN- The Rio Times) Brazil was already in a trade dispute with the United States when police took former president Jair Bolsonaro back into custody on coup-related charges.
Officials in Brasília now concede that their main objective in Washington – softening steep tariffs and lifting sanctions on Brazilian authorities – has become even harder.
The Lula government is trying to unwind a“tarifaço” that stacks an extra 40% duty on top of a 10% tariff the Trump administration applied to all countries. The package hits many Brazilian exports, especially industrial goods with few alternative buyers.
At the same time, Brazil faces a Section 301 investigation into digital trade, electronic payments, intellectual property, ethanol imports and environmental enforcement.
The tool can end in new tariffs if US authorities decide Brazilian rules are“unreasonable” or“discriminatory.” Even in this climate, Brasília has claimed a partial win.
After phone calls between Luiz Inácio Lula da Silva and Donald Trump and meetings between foreign ministers Mauro Vieira and Marco Rubio, the White House expanded the list of Brazilian products exempt from the 40% surcharge.
Some 238 product lines worth roughly $4 billion were removed from the extra duty. Coffee and beef now enter duty-free in many cases. Even so, many exports still pay the full 50%, including aircraft.
U.S.–Brazil Tensions Deepen Over Sanctions
The politics are even more sensitive than the numbers. Washington has imposed human-rights sanctions on Supreme Court justice Alexandre de Moraes and other figures, accusing them of abuse of power and censorship.
Bolsonaro's renewed arrest, ordered by Moraes, prompted the US deputy secretary of state to call the move“provocative and unnecessary” and brand the judge a serial violator of rights.
For the Lula administration, that mix of trade pressure and institutional controversy is toxic. It is asking Washington to ease sanctions on the very officials driving Bolsonaro 's prosecution, while US negotiators expect concessions on big-tech regulation, access to critical minerals, local-content rules and subsidies.
Brazil needs market access and legal relief, but arrives weakened by its own internal fight over how far judges can go in the name of protecting democracy.
Officials in Brasília now concede that their main objective in Washington – softening steep tariffs and lifting sanctions on Brazilian authorities – has become even harder.
The Lula government is trying to unwind a“tarifaço” that stacks an extra 40% duty on top of a 10% tariff the Trump administration applied to all countries. The package hits many Brazilian exports, especially industrial goods with few alternative buyers.
At the same time, Brazil faces a Section 301 investigation into digital trade, electronic payments, intellectual property, ethanol imports and environmental enforcement.
The tool can end in new tariffs if US authorities decide Brazilian rules are“unreasonable” or“discriminatory.” Even in this climate, Brasília has claimed a partial win.
After phone calls between Luiz Inácio Lula da Silva and Donald Trump and meetings between foreign ministers Mauro Vieira and Marco Rubio, the White House expanded the list of Brazilian products exempt from the 40% surcharge.
Some 238 product lines worth roughly $4 billion were removed from the extra duty. Coffee and beef now enter duty-free in many cases. Even so, many exports still pay the full 50%, including aircraft.
U.S.–Brazil Tensions Deepen Over Sanctions
The politics are even more sensitive than the numbers. Washington has imposed human-rights sanctions on Supreme Court justice Alexandre de Moraes and other figures, accusing them of abuse of power and censorship.
Bolsonaro's renewed arrest, ordered by Moraes, prompted the US deputy secretary of state to call the move“provocative and unnecessary” and brand the judge a serial violator of rights.
For the Lula administration, that mix of trade pressure and institutional controversy is toxic. It is asking Washington to ease sanctions on the very officials driving Bolsonaro 's prosecution, while US negotiators expect concessions on big-tech regulation, access to critical minerals, local-content rules and subsidies.
Brazil needs market access and legal relief, but arrives weakened by its own internal fight over how far judges can go in the name of protecting democracy.
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