Brazil downplays economic risk amid market jitters and US tensions
The post Brazil downplays economic risk amid market jitters and US tensions appeared on BitcoinEthereumNews.com. Brazil’s government on Friday minimized concerns over the economic fallout from US President Donald Trump’s threat to impose a 50% tariff on Brazilian imports, expressing hope for future negotiations even as tensions flared over legal proceedings involving former president Jair Bolsonaro. Trump told reporters he might eventually speak to Brazilian President Luiz Inácio Lula da Silva but criticized Brazil’s judiciary for prosecuting Bolsonaro, who faces charges of attempting to overturn Lula’s 2022 election victory. “Maybe at some point I’ll talk to him. Right now I’m not,” Trump said before departing for flood-hit Texas, reiterating his belief that Bolsonaro is being treated “very unfairly.” In response, Lula reaffirmed Brazil’s willingness to negotiate but warned of retaliation if diplomacy fails. “We’ll first try to negotiate, but if there’s no negotiation, the law of reciprocity will be put into practice,” Lula said in a Thursday interview with Record TV. Brazil downplays economic risk amid market jitters and US tensions Despite the tariff threat, Brazil’s Finance Ministry projected limited economic impact, maintaining its 2.5% GDP growth forecast for 2025. Officials said only specific sectors, like aerospace and energy machinery—heavily reliant on US buyers—might suffer. A White House official, speaking anonymously, said that critical sectors such as oil and minerals would remain exempt, aligning with broader tariff policies announced in April. Oil is Brazil’s top export to the US, but local industry groups expressed uncertainty about whether exemptions would continue. The US also imports significant volumes of Brazilian steel, coffee, pulp, beef, and orange juice—goods Brazil believes can be redirected to other markets. “It is not like we cannot survive without the US,” Lula said, reiterating Brazil’s ongoing efforts to diversify its trade partnerships. China already accounts for 28% of exports, compared to 12% for the US. Still, Brazilian exporters are wary. The country’s beef…
The post Brazil downplays economic risk amid market jitters and US tensions appeared on BitcoinEthereumNews.com.
Brazil’s government on Friday minimized concerns over the economic fallout from US President Donald Trump’s threat to impose a 50% tariff on Brazilian imports, expressing hope for future negotiations even as tensions flared over legal proceedings involving former president Jair Bolsonaro. Trump told reporters he might eventually speak to Brazilian President Luiz Inácio Lula da Silva but criticized Brazil’s judiciary for prosecuting Bolsonaro, who faces charges of attempting to overturn Lula’s 2022 election victory. “Maybe at some point I’ll talk to him. Right now I’m not,” Trump said before departing for flood-hit Texas, reiterating his belief that Bolsonaro is being treated “very unfairly.” In response, Lula reaffirmed Brazil’s willingness to negotiate but warned of retaliation if diplomacy fails. “We’ll first try to negotiate, but if there’s no negotiation, the law of reciprocity will be put into practice,” Lula said in a Thursday interview with Record TV. Brazil downplays economic risk amid market jitters and US tensions Despite the tariff threat, Brazil’s Finance Ministry projected limited economic impact, maintaining its 2.5% GDP growth forecast for 2025. Officials said only specific sectors, like aerospace and energy machinery—heavily reliant on US buyers—might suffer. A White House official, speaking anonymously, said that critical sectors such as oil and minerals would remain exempt, aligning with broader tariff policies announced in April. Oil is Brazil’s top export to the US, but local industry groups expressed uncertainty about whether exemptions would continue. The US also imports significant volumes of Brazilian steel, coffee, pulp, beef, and orange juice—goods Brazil believes can be redirected to other markets. “It is not like we cannot survive without the US,” Lula said, reiterating Brazil’s ongoing efforts to diversify its trade partnerships. China already accounts for 28% of exports, compared to 12% for the US. Still, Brazilian exporters are wary. The country’s beef…
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