The recent announcement of increased trade tariffs by U.S. President Donald Trump may accelerate the Mercosur–European Union trade agreement negotiations, according to Jorge Viana, head of the Brazilian Trade and Investment Promotion Agency (Apex). Viana remarked, "I don't think Brazil should focus on what advantage we can get from this. After all, President Lula supports multilateralism and advocates for agreements." He noted that European leaders have shown interest in fast-tracking the deal's ratification.
Viana highlighted that new U.S. tariffs could offer trade openings for Brazil and others, yet they also present challenges. "Before the opportunities come, the difficulties. It's a major risk. Some analysts are already saying that the U.S. may be ushering in the era of China," he commented.
The tariffs imposed by the U.S. differ by region: 10% for Latin America, 20% for Europe, and 30% for Asia. Despite the 10% tariff on Brazil, Viana sees no real advantage and warns of harm to global trade. He stated, "I don't see any benefit in a scenario where global trade relations worsen. The United States introduced the world decades ago to the idea of a free market, conglomerates, and trade agreements—they were the ones promoting this, claiming it was better for the world."
Viana also noted that while instability might boost investment in Brazil, the overall context is detrimental. "An insecure world, a world in conflict, is bad for everyone—including Brazil. That's my view—it will be bad for all, regardless of whether you win a little here or lose a little there," he concluded.
Source: DatamarNews