Brazilian companies react to Trump prices between relief and uncertainty

Brazilian companies welcomed with a mixture of relief. Similarly, doubts the surprise decision of the White House on Wednesday, to publish a list of nearly 700 exceptions to the 50 % tax imposed by US President Donald Trump on the country’s exports from August 6.

If these exemptions concern major exports from Brazil such as planes. However, iron ore and orange juice, the country nevertheless estimates that 35.9 % of its sales to the United States, in value, will be affected by the new price. However, Key products such as beef and coffee are notably absent from the list of exemptions.

“We can say that the selection was very surgical. Meanwhile, insofar as the United States has chosen the most important products for them, but also in the exporting agenda of Brazil,” analyzes Gilberto Braga, economist at Ibmec University.

André Ribeiro Chaves. brazilian companies react trump prices director of the FerguBel steel industry in the state of Minas Gerais, said that he would recall more than a hundred employees on leave.

“These exceptions bring us some comfort,” he said.

But Abrafrigo. a cattle lobby that represents Marfrig and small Brazilian slaughterhouses, estimates that new prices make sales in the United States impossible, adding that exporters could lose $ 1.5 billion in beef and by-products by the end of the year.

However. while some companies are delighted and others assess their losses, many remain perplexed as to the real scope of exemptions.

For example. if certain products in the wood sector benefit from exclusions, companies in the sector are still trying to determine which segments will really be impacted by new prices. Millpar. manufacturer of wood -based products in southern Brazil, says that he does not know if he should recall the hundreds of employees put on leave.

brazilian companies react trump prices In the United States, full price exemptions have also been well received.

The Consumer Brands Association said she was optimistic about the recognition. by the Trump administration, of the scarcity of certain natural resources, such as eucalyptus and other pulp products.

“We highly encourage Brazilian officials to negotiate with the Trump administration in order to obtain the same recognition for coffee. other essential inputs to the American economy,” said Tom Madrecki, vice-president of the resilience of the association’s supply chain.

There are many in Brazil who still hope for new exemptions.

“We believe that there is a room for maneuver. especially since Brazilian beef is a basic food for daily consumption in the United States,” said Fabrizzio Capuci, commercial director of Naturafrig Food Food, an exporter of beef that has suspended his expeditions to the United States.