Brazilian Companies Head to US to Challenge Steep Tariffs; See Their Arguments

Starting this week, representatives from Brazilian companies and industry associations are participating in hearings in Washington D.C. Their primary objective is to prevent the adoption of the 25% tariffs proposed by the U.S. Trade Representative (USTR), arguing that these duties would negatively impact both economies. The core argument presented by these delegations is that, in addition to harming Brazilian businesses, the proposed tariffs would increase costs for American companies and consumers, potentially leading to a reduction in U.S. domestic investment and job opportunities. Welber Barral, former foreign trade secretary and representative for the Brazilian Sugarcane Industry and Bioenergy Union (Unica), plans to highlight several flaws in the USTR's report. These deficiencies, he notes, pertain not only to American law but also to the regulations of the World Trade Organization (WTO). Barral emphasizes that the report failed to adequately consider certain data, particularly outdated and inaccurate information regarding deforestation. Meanwhile, the Confederation of Agriculture and Livestock of Brazil (CNA) contends that criticisms regarding preferential tariffs, ethanol market access, and deforestation control lack support from economic evidence and WTO rules. The confederation advocates for resolving these issues through bilateral cooperation rather than unilateral tariff measures. Patricia Gomes, foreign trade director for the Brazilian Association of Machinery and Equipment Industries (Abimaq), will point out that over 80% of the bilateral trade in their sector occurs between affiliated companies, specifically parent companies and their subsidiaries. She will underscore that imposing tariffs would not only affect Brazilian exports but would also, in turn, harm American industrial interests, as many U.S. companies rely on Brazilian components or production stages.