Brazil planemaker Embraer ends Q2 with backlog at $29.7 billion
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Reuters
3 hours ago
- Reuters
Brazil is planning relief measures for firms hit by US tariffs, says minister
BRASILIA, July 29 (Reuters) - Brazil is planning relief measures for companies impacted heavily by steeper U.S. tariffs set to take effect in August, Finance Minister Fernando Haddad said on Tuesday. Speaking to CNN Brasil, Haddad said the plan, which will be reviewed by President Luiz Inacio Lula da Silva, includes steps to ensure companies have the confidence to maintain their investments. He denied, however, that the plan includes tax exemptions for the affected companies. Earlier on Tuesday, Ports and Airports Minister Silvio Costa Filho said the government would support planemaker Embraer ( opens new tab, citing a potential additional credit line for the company. Crude oil, coffee, orange juice, beef, and aircraft - mainly from Embraer - are among Brazil's top exports to the United States. Haddad said the government still lacks clarity on what exactly will come from the U.S. starting on August 1, the date U.S. President Donald Trump has set to hike tariffs on Brazilian imports to the U.S. to 50% from the current 10%. The minister said Brazil could see a positive surprise in food inflation due to the tariffs' impact on sectors such as beef and fruit, noting that domestic prices appear to be falling as a result of increased supply in the local market. Haddad also said Latin America's largest economy cannot make the "symmetrical mistake" of retaliating in the same areas targeted by the U.S. tariffs, which he said would amount to responding in kind and ultimately punishing Brazilian consumers. "I cannot anticipate decisions that have not been made," he said, when asked whether taxing big tech companies was among the retaliation measures under consideration.
Reuters
3 hours ago
- Reuters
Brazil beef-packers estimate $1 billion in losses if US tariffs apply
SAO PAULO, July 29 (Reuters) - Brazilian beef-packers' lobby Abiec, which represents companies including JBS and Marfrig ( opens new tab, on Tuesday estimated losses of $1 billion if the United States applies a 50% tariff on Brazilian exports. The U.S. is Brazil's second biggest beef export destination after China. Roberto Perosa, head of Abiec, said Brazilian beef companies had expected to sell some 400,000 tons by yearend to the U.S., but imposition of a 50% tariff would make sales "inviable." No market can immediately replace the U.S. based on the sheer volume demanded by the importers and the price they are in a position to pay, he said. Brazilian beef-packers exported around 181,000 metric tons of beef worth $1 billion to the U.S. in the first half of this year, according to trade data, equivalent to around 12% of the country's total beef exports. The trade represented a nearly 113% increase by volume and a 102% increase by revenue on an annual basis, reflecting strong demand for the Brazilian product, which is mainly processed to make hamburgers for the United States. Speaking at a live event, Perosa said sector representatives are having talks with lawmakers in the U.S. hoping they can help avert enforcement of the new tariffs from August 1. He said a lack of Brazilian exports would spur domestic beef inflation in the U.S., which has been grappling with scarce cattle supplies and has been increasingly relying on beef imports.
Reuters
3 hours ago
- Reuters
Brazil asks US to spare food products, Embraer planes from 50% tariff, source says
BRASILIA, July 29 (Reuters) - Brazil's government has asked the U.S. to exclude food products and Embraer's ( opens new tab aircraft from the 50% tariff it plans to impose on Brazilian goods starting August 1, a source familiar with the matter told Reuters on Tuesday. The request was the main topic of recent discussions between Brazilian and U.S. officials, the source said, including three calls between Brazil's Vice President and Trade Minister Geraldo Alckmin and U.S. Commerce Secretary Howard Lutnick in recent days. Newspaper Folha de first reported the request on Monday. The press office of Brazil's Development and Trade Ministry, which is headed by Alckmin, denied the report, saying the government is working to suspend the tariffs across all sectors. But a Brazilian official, speaking on condition of anonymity to discuss the sensitive topic, acknowledged that the government had some priorities that it could not make public because of a confidentiality clause in the negotiations. It also wants to avoid the perception that it is trading off some sectors for others, the source said. But the same person added that some sectors needed to be prioritized in the talks due to the severity of the impact in certain areas. Embraer, the world's No. 3 planemaker after Airbus ( opens new tab and Boeing (BA.N), opens new tab, is currently the government's top concern, with dozens of pending deliveries to U.S. airlines. It has said a 50% tariff could trigger order cancellations, deferred deliveries and job cuts, hammering its revenue like the pandemic did. Ports and Airports Minister Silvio Costa Filho said the government would do "everything within its power to help Embraer," hinting at potentially providing the planemaker with credit lines. In addition to aircraft, the U.S. is also a large buyer of Brazilian food products, such as coffee and orange juice. Trump's tariff plans could devastate Brazil's citrus belt, where factories are already scaling back production and orange farmers are considering leaving fruit to rot due to low prices. Tariffs could also effectively halt the flow of Brazilian coffee to the U.S.
