U.S. Tariffs Risk Shrinking Brazil's GDP
(MENAFN) The newly imposed 50 percent tariffs by the United States on Brazilian exports risk shrinking Brazil's GDP by 0.41 percent, according to a report released Monday.
The study from the renowned Getulio Vargas Foundation (FGV) warns that U.S. President Donald Trump’s proposed tariffs could slash Brazil’s food exports to the American market by as much as 75 percent, leading to a significant economic contraction.
Brazil’s agribusiness sector, a dominant global food supplier, contributes roughly 30 percent of the country’s exports to the U.S., including key commodities like coffee, sugar, and orange juice.
Even if Washington reverses its tariff threats, the report emphasizes that "the climate of insecurity in international trade" is already undermining the strong trade ties between the two nations, with the United States being Brazil’s second-largest trading partner. The report also asserts that Trump's tariffs violate World Trade Organization (WTO) regulations.
The tariffs, announced by President Trump on Wednesday, are set to take effect on August 1, targeting Brazilian imports into the U.S.
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