DATA & FIGURES
The proposed 25 percent tariffs on Brazilian goods could have a significant impact on the country's economy, with 47 percent of Brazilians agreeing that Flavio Bolsonaro encouraged the US to impose tariffs. The tariffs would exempt beef, coffee, rare earth minerals, and aircraft parts, but could still have a significant impact on other industries. The Trump administration has until July 15 to decide whether to impose the tariffs.
THE SCENARIO
The proposed tariffs are part of a larger geopolitical context, with the US taking a more active role in Latin American politics. The capture of Venezuelan President Nicolas Maduro and the backing of right-wing candidates across the region, including Abelardo De La Espriella in Colombia, have significant implications for the region's stability and trade relationships.
DIRECT QUOTE
"New US tariffs on Brazilian products would hand the current Brazilian government precisely the political victory it has been engineering" — Flavio Bolsonaro, Brazilian Presidential Hopeful
BBN INSIGHT
The Positive Side: A delay in the tariffs could provide a temporary reprieve for Brazilian businesses and investors, allowing them to adjust to the new trade landscape. However, The Negative Side: The ongoing uncertainty and potential for tariffs could have a chilling effect on investment and trade, particularly in industries that are not exempt from the tariffs. The dispute has also highlighted the complex and often contentious relationship between the US and Brazil, with significant implications for the region's stability and trade relationships.