Brazil Seeks WTO Relief Against Trump Tariffs
The 50-percent tariff on several Brazilian goods went into force Wednesday over what Trump has termed a "witch hunt" against his far-right ally Jair Bolsonaro, the former president on trial for plotting a coup.
Sources in the government of incumbent President Luiz Inacio Lula da Silva told AFP Brasilia had filed a request for consultations with the US mission to the WTO -- the first formal step in the trade body's dispute settlement process.
Trump's latest tariff salvo raised duties on Brazil from 10 percent to 50 percent for key exports including coffee, beef and sugar.
Exempt were nearly 700 other exports including civilian planes, orange juice and pulp, Brazil nuts, and some iron, steel and aluminum products.
Brazil's Vice President Geraldo Alckmin previously told journalists the new tariff would apply to about 36 percent of the country's exports to the United States, equal to trade of about $14.5 billion last year.
Trump's Brazil tariff is among the highest imposed on US trading partners and was framed in openly political terms, sweeping aside centuries-old trade ties and a surplus Brasilia put at $284 million last year.
In an executive order last week, the Trump administration lashed out at Brazilian officials for "unjustified criminal charges" against Bolsonaro, on trial for allegedly plotting to wrest back power after losing the 2022 presidential election to Lula.
Trump's order also charged that the Lula government's recent policies and actions threatened the US economy, national security, and foreign policy.
US tensions with Brazil are not likely to dissipate soon, with a Brazilian judge on Monday placing Bolsonaro under house arrest pending the outcome of his trial for contravening a social media ban.
The judge, Supreme Court Justice Alexandre de Moraes, presides over Bolsonaro's trial and was himself hit with financial sanctions this week as Washington claimed he had "taken it upon himself to be judge and jury in an unlawful witch hunt."
Moraes has clashed repeatedly with the far-right in Brazil, and with tech titan Elon Musk over the spread of online misinformation.
Bolsonaro risks decades in prison if found guilty on the coup charges that had allegedly also included discussions to assassinate Lula and other senior officials.
The tariff hike on Brazilian goods came a day before a separate wave of higher duties on dozens of economies ranging from the European Union to Taiwan.
Analysts at Pantheon Macroeconomics estimate the pending increases would boost the average effective tariff rate for US imports to nearly 20 percent.
This marks the highest level since at least the 1930s, according to the Budget Lab at Yale University.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Int'l Business Times
an hour ago
- Int'l Business Times
Influx Of Afghan Returnees Fuels Kabul Housing Crisis
Weeks after he was forced to return from Iran, Mohammad Mohsen Zaryab was still searching for somewhere to live in Kabul, where rental prices have soared along with an influx of Afghans expelled from neighbouring countries. More than 2.1 million Afghans have returned from Pakistan and Iran so far this year, according to the United Nations refugee agency. They join earlier rounds of mass expulsions from the neighbouring countries, deported or driven out by fear of arrest. Many of the returnees, like Zaryab, fled with their meagre belongings to Kabul, expecting the swelling city of eight million to offer the best prospects of finding work in a country where half the population lives below the poverty line. Zaryab begged landlords to bring down prices for his family of eight, only to be told, "If you can't pay, someone else will". The 47-year-old factory worker said he had expected when he returned in July to find more solidarity for Afghans coming "from far away with no home". Multiple Kabul property dealers told AFP that rental prices had skyrocketed with the influx of returnees. "Since landlords noticed that refugees (from Iran and Pakistan) were returning, they doubled their rents," said real estate agent Hamed Hassani, calling for the government to "intervene". "We have many refugees who come to ask us for an apartment to rent, and most of them cannot afford what's available," he said. A year ago, a three-room house would on average cost 10,000 Afghanis ($145) per month, but renters now pay 20,000, said Nabiullah Quraishi, the head of a property dealership. The cost amounts to a fortune for the majority of Afghanistan's 48 million people, 85 percent of whom live on less than one dollar a day, according to the UN. Two years ago, multiple landlords would come to Quraishi's business every month seeking help renting their property. Now, demand outstrips supply, he said. The municipality denies any housing crisis in the city. Major urban development plans, which include building new roads even if it means bulldozing numerous residences, are further straining housing access. "Seventy-five percent of the city was developed unplanned," municipality spokesman Nematullah Barakzai told AFP. "We don't want this to happen again." Zahra Hashimi fears being evicted from the single basement room that has served as her home since she and her family returned from Iran. Her husband, who works odd jobs, earns about 80 Afghanis per day (a little over a dollar), not enough to pay the rent for the property, which has no electricity or running water. "We lost everything when we returned to Afghanistan," said Hashimi, whose eldest daughter can no longer attend school under Taliban rules that deny women and girls schooling and employment. Her two primary-school-aged daughters could still attend, but the family cannot afford the tuition. The housing pressures have also affected long-time Kabul residents. Tamana Hussaini, who teaches sewing in the west of Kabul, where rents are lower, said her landlord wants to raise the 3,000 Afghani rent for their three-bedroom apartment. The family of eight tried to move out, but "rents are too high", she told AFP. "It's a frustrating situation where you can't stay, but you can't leave either." Since returning to Afghanistan from Iran, Mohammad Mohsen Zaryab has struggled to find a place to live AFP Multiple Kabul property dealers told AFP that rental prices had skyrocketed with the influx of returnees AFP Major urban development plans are further straining housing access AFP
DW
an hour ago
- DW
Ukraine updates: Zelenskyy calls for talks with Putin – DW – 08/07/2025
Ukraine's president has been seeking a one-on-one meeting with Kremlin leader Vladimir Putin. Meanwhile, Moscow says it is preparing for a meeting between the Russian and US leaders. Follow DW for the Volodymyr Zelenskyy says he wants a direct meeting with Russian President Vladimir Putin, saying real solutions can only come from talks between leaders. The push comes after US President Donald Trump's envoy met Putin in Moscow — a meeting Trump called "highly productive." It also follows Zelenskyy's own call with Trump and EU leaders. The Ukrainian president plans further talks with German Chancellor Friedrich Merz and others, insisting that Russia must take concrete steps to end the war it started. Meanwhile, the Kremlin says preparations for Trump-Putin summit have to DW's coverage of the latest developments in the Russian war on Ukraine. You join us with Ukrainian President Volodymyr Zelenskyy pushing for a direct meeting with Russia's leader, Vladimir Putin, saying meaningful progress can only happen when leaders talk face-to-face. The call came after Trump's envoy Steve Witkoff met with Putin in Moscow — a meeting Trump said had produced results, though US sanctions are still on the table. Stay tuned for the latest news and analysis from the ongoing war.
Int'l Business Times
an hour ago
- Int'l Business Times
India Exporters Say 50% Trump Levy A 'Severe Setback'
Indian exporters warned on Thursday that the cost of additional US tariffs risked making businesses "not viable" after President Donald Trump ordered steeper levies totalling 50 percent on imported Indian goods. Prime Minister Narendra Modi said he was willing to "pay a great personal price", while opposition Congress party leader Rahul Gandhi called the levies "economic blackmail" and "an attempt to bully India into an unfair trade deal". Stocks opened marginally lower on Thursday, with the benchmark Nifty index down 0.31 percent after an initial 25 percent US tariff came into effect. That levy will be doubled in three weeks after Trump signed an order on Wednesday to impose an additional 25 percent tariff because of New Delhi's continued purchases of Russian oil, a key revenue source for Moscow's war in Ukraine. India is the second-largest buyer of Russian oil, saving itself billions of dollars on discounted crude. India's foreign ministry condemned Trump's announcement of further tariffs, calling the move "unfair, unjustified and unreasonable". S.C. Ralhan, president of the Federation of Indian Export Organisations, said he feared a troubling impact. "This move is a severe setback for Indian exports, with nearly 55 percent of our shipments to the US market directly affected," he said in a statement. "The 50 percent reciprocal tariff effectively imposes a cost burden, placing our exporters at a 30-35 percent competitive disadvantage compared to peers from countries with lesser reciprocal tariff." Ralhan said "many export orders have already been put on hold" as buyers reassess sourcing decisions. Profit margins for "a large number" of small- to medium-sized enterprises profit "are already thin", he said. "Absorbing this sudden cost escalation is simply not viable," he said. India, the world's fifth-largest economy and most populous nation, is bracing for a bumpy ride because the United States is its largest trading partner, with New Delhi shipping goods worth $87.4 billion in 2024. "If the extra 25 percent tariff that President Trump has announced on imports from India remains in place, India's attractiveness as an emerging manufacturing hub will be hugely undermined," Shilan Shah of Capital Economics said in a note. US spending drives around 2.5 percent of India's GDP, Shah said. A 50 percent tariff is "large enough to have a material impact", he said, with the resulting drop in exports meaning the economy would grow by closer to six percent this year and next, down from the seven percent they currently forecast. India's top exports include smart phones, drugs, gems, textiles and industrial machinery, with some of the most labour-intensive goods -- including jewellery and seafood -- under threat. The Seafood Exporters Association of India said on Wednesday that the 50 percent tariff "imperils" its $3 billion business. India's jewellery sector, which exported goods worth more than $10 billion last year, had already warned of job losses potentially hitting "thousands" at lower levy levels. It called the higher rate "devastating". A key sticking point for India has been its reluctance to fully open its agriculture, a sector that employs vast numbers of people, to US imports. Modi said in a speech on Thursday that "India will never compromise on the interests of its farmers". He said he would "have to pay a great personal price, but I am ready for it", without giving further details. It seemed a far cry from India's early hopes for special tariff treatment. Trump said in February he found a "special bond" with Modi when the Indian leader visited Washington. Successive US administrations have seen India as a key partner that has like-minded interests with regard to China. India and China are intense rivals competing for strategic influence across South Asia. Indian media has reported that Modi might visit long-time rival China in late August. The trip has not been confirmed by officials but it would be his first visit to China since 2018. Modi and China's President Xi Jinping last met in Russia in October 2024.
