US-Brazil working group on tariffs to continue for another month

A joint working group between the United States and Brazil, formed to address tariffs imposed by the US, is set to extend its negotiations by an additional month beyond its initial 30-day mandate. The group, created in early May following President Lula's visit to the White House, was scheduled to conclude its work on Sunday, June 7.

However, the extension became necessary as the US government recommended further tariffs against Brazil. These proposed measures are based on Section 301, which examines anti-competitive practices, and could impose an additional 25% surcharge on certain Brazilian exports. Brazil is actively working to overturn the initial package of tariffs, which has been in place since last year, and is now facing the prospect of this new surcharge.

The Brazilian government is targeting July 15 as a deadline to reverse the first set of tariffs. Beyond the existing 10% global tariff and the potential 25% surcharge, the US is also considering a third offensive, imposing a 12.5% tariff due to concerns over forced labor, which has not yet been factored into the ongoing discussions.

Coordinated by Brazil's Minister of Development, Industry, Trade, and Services, Márcio Elias Rosa, and involving members of the Ministry of Foreign Affairs (Itamaraty), Brazil aims to demonstrate its trade surplus with the US. The country is also open to discussing other issues, such as rare earths and ethanol, if the US expresses interest. Despite the extended deadline, both governments anticipate further negotiation time, with US Trade Representative Jamieson Greer assuring Brazilian Chancellor Mauro Vieira of continued dialogue.

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continuity of the conversations.