Brazilian officials are considering filing a lawsuit against Donald Trump’s stringent tariffs.
Brazilian finance minister Fernando Haddad announced to UOL on Wednesday that Brazil may file a legal challenge to the US government’s decision to impose tariffs on Brazilian goods this month.
Haddad said, “We will file a lawsuit if necessary.”
Brazil won’t participate in lobbying efforts, he added.
Trump cited trade practices that he claimed were unfair as the causes of the tariff rate as well as what he called a “witch-hunt” against former Brazilian president Jair Bolsonaro, who is currently on trial for plotting a coup.
Brazil has criticized the tariffs and said it is “indignant” that it has persistent trade deficits with the US.
strains in the industry
Haddad’s remarks come as tariffs have already affected a number of goods and businesses that US consumers depend on daily.
Under the new tariffs, coffee prices, which were already rising as a result of droughts, are expected to rise even more.
According to the US Bureau of Labor Statistics, coffee costs have increased by 14.5 percent from last year.
Brazil supplies about 35% of the US’s unroasted coffee. According to its earnings report released on Wednesday, major customers, including owner of Folgers JM Smucker, reported a 22% decline in profits from its coffee business.
Coffee prices were projected to increase by 20% by April according to the Ohio-based company, which purchases 225 million kilogrammes (500 million pounds) of coffee annually, mostly from Brazil and Vietnam.
JM Smucker’s stock is falling on Wall Street. It was down more than 5% from the opening of the market on Wednesday at 1 p.m. (15:00 GMT).
Brazil also supplies ground beef, which is a significant source of imports for the US. The most recent consumer price index, which showed beef prices rising 1.5% from last month, already is already putting the strain on consumers ahead of the upcoming Labor Day holiday weekend.
Brazilian Beef Exporters Association president Robert Perosa previously warned that if Trump’s tariffs are implemented, US exports would continue to be unsustainable.
threats to reserve currency
Haddad noted that today’s world leaders are unsure about the US and what the future may hold.
The US dollar will remain a reserve currency for many years, according to the finance minister, unless Washington “keeps making mistakes.”
The US dollar is so deeply ingrained in the global financial system that it would take decades to break, and there are no viable contenders to its status, according to Al Jazeera’s report.
Source: Aljazeera
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