Brazil may emerge as alternative economy from sweeping US tariffs, economist says

Record ID: 1988305

  • Title: Brazil may emerge as alternative economy from sweeping US tariffs, economist says
  • Date: 4th April 2025
  • Summary: RIO DE JANEIRO, BRAZIL (APRIL 4, 2025) (REUTERS) BRAGA IN HIS OFFICE (SOUNDBITE) (Portuguese) ECONOMIST, GILBERTO BRAGA, SAYING: "This 10% flat-line tariff on Brazilian products is relatively small when compared to the tariffs on the main foreign suppliers to the U.S. market. So, in this sense, everything that the United States currently buys from other countries, the Braz
  • Embargoed:
  • Keywords: Brazil US economy inputs tariffs
  • Location: VARIOUS LOCATIONS, BRAZIL
  • City: VARIOUS LOCATIONS, BRAZIL
  • Country: Brazil
  • Topics: South America / Central America,Economic Events
  • Reuters ID: LVA004439204042025RP1
  • Aspect Ratio: 16:9
  • Story Text:Sweeping U.S. tariffs could prove relatively advantageous for Brazil, Latin America's largest economy, despite President Donald Trump's move to impose a 10% levy on its exports to the United States, economist Gilberto Braga said on Friday (April 4).
    Local markets reacted positively to the highly anticipated announcement on Wednesday (April 3), with the Brazilian real strengthening past 5.60 per U.S. dollar and reaching its highest level since October 2024.
    Meanwhile, the benchmark stock index edged up 0.23%, with many pointing out that Brazil's comparatively lighter tariff burden could shield it from major trade risks while also attracting capital flows shifting away from the United States.
    According to economist Gilberto Braga, Brazil's capacity as a major producer and exporter of inputs could make the country emerge as an alternative economy as the American market closes to certain countries by placing higher tariffs on them.
    "There's what we call a window of opportunity to try to occupy the space that will be left by the supply of the American market, by the countries that are being overtaxed," he explained.
    Government officials from Brazil - the world's largest exporter of soy, cotton, beef, and chicken - had sought to stress that its trade relationship with the United States did not undermine the U.S. economy.
    The U.S. has run a trade surplus with Brazil since 2008, reaching $253 million last year on more than $80 billion in bilateral trade.
    (Production: Renato Spyrro, Gloria Lopez)
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2025. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register