INVESTMENTS
US-Brazil tensions make the future of FDI uncertain
Dollar bills with Donald Trump's face on them, distributed at a left-wing rally to protest the new US tariffs on Brazilian goods. Photo: José Cruz/EBC
As the United States’ new 50% tariffs on Brazilian goods kick in, immediate effects are expected across several sectors — even if nearly 700 products were exempted, covering about 40% of all US exports.
That is especially true for perishable agricultural exports that cannot be easily reshipped, such as fruits and fish, and for manufactured goods like machinery and furniture, which will take time to find new buyers. In some cases, other countries are stepping in. Last week, China authorized 183 new Brazilian coffee exporters; in July, Mexico surpassed the US to become the second-largest buyer of Brazilian beef.
The long-term effects of the escalating trade tensions are still being calculated and extend beyond direct trade. Felipe Camargo, lead global economist at Oxford Economics, sees a…
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