A renowned Brazilian economist, Otaviano Canuto, has expressed concerns over the trade relations between Brazil and the United States. In an interview with O Globo, the former executive director of the International Monetary Fund (IMF) discussed the tariffs policy of the new US administration, leaving open the possibility that Brazil could face a similar fate to Mexico, Canada and China. According to Canuto, Brazil would be the next in line, after the European Union, in the event of a trade war. The only question, he said, is how Brazil would be affected.
Regarding the new US President, Donald Trump, Canuto stated, “He can opt for a general tariff or specific measures. Our people in the steel and aluminum industries should already be worried.”
Canuto is confident that the US will not stop at Mexico, Canada, China and the EU in its trade war. It is only a matter of time, he believes, before the new US administration imposes tariffs on Brazilian products as well.
Over the weekend, Trump ordered a 10% tariff on Chinese imports, citing the need for cooperation in the fight against the synthetic opioid fentanyl. The US also imposed a 25% tariff on imports from Mexico and Canada, citing the threats of illegal immigration and fentanyl trafficking.
However, Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau managed to delay the implementation of the tariffs, with Trump agreeing to a one-month delay. China, on the other hand, has chosen to take the matter to the World Trade Organization (WTO), filing a complaint.