【By Observer Net, Ruan Jiaqi】

According to CCTV News, on July 30 local time, US President Trump signed an executive order to impose a 40% tariff on Brazil, bringing the total tariff to 50%. The White House said that the new tariffs will take effect 7 days later on August 6, rather than the Friday of this week (August 1) as initially announced by Trump.

Another difference from Trump's initial threats is that the executive order released by the White House on Wednesday excluded dozens of key Brazilian exports to the US, including civilian aircraft, pig iron, precious metals, pulp, energy products and fertilizers. According to analysis by the Brazil-US Chamber of Commerce, nearly 700 items were exempted, accounting for 43.4% of the total value of Brazil's exports to the US.

This list brought relief to many in Brasilia. "We are not facing the worst scenario, and the result is more moderate than expected," said Brazil's Finance Minister Silveira to the press.

The exemption news quickly boosted market sentiment. On Wednesday, shares of Embraer, Brazil's aviation industry company, rose 11%, while one of the world's largest pulp producers, Suzano, saw a gain of over 1% in the afternoon.

As the third-largest civil aircraft manufacturer in the world, after Airbus and Boeing, Embraer is highly dependent on the US market and was a high-risk target for the tax increase. The US is Brazil's largest export destination for aircraft, with 45% of its commercial aircraft and 70% of its business jets exported to the US.

Embraer stated that after preliminary assessment, the 10% tariff imposed by Trump in April would remain, and the exemption only applies to the additional 40% portion.

In addition, due to the exemption of petroleum products, the Brazilian Petroleum Industry Association (IBP) announced the resumption of oil exports to the US; the Mining Association (Ibram) stated that the tariff exemption covered 75% of mineral exports.

Embraer official website

Brazil is not a country with a trade deficit with the US. On the contrary, in 2024, the US had a trade surplus of 18.3 billion dollars with Brazil, reaching a new high in ten years. The real logic behind the US tariff policy lies in Trump's pressure on Lula's government to stop the judicial investigation against his ally, former Brazilian president Bolsonaro. This has caused strong dissatisfaction in Brazil, accusing the US of interfering in its internal affairs.

Trump's executive order issued on Wednesday directly linked two issues. On the same day, the US also announced sanctions against Justice Alexandre de Moraes, a judge at the Brazilian Supreme Court who is handling the relevant case. The US Department of State had already imposed visa restrictions on De Moraes and others on the 18th, and Lula publicly condemned it, supporting the affected judges.

Rafael Favetti, partner at the Brasilia political consulting firm Fatto Inteligencia Politica, believes that the exemption list is mainly to respond to American companies' concerns, rather than Trump abandoning his interference in Brazil's politics.

He added, "This also shows the effectiveness of Brazil's foreign affairs work, successfully making American companies aware of the severity of the issue."

Brazil's Foreign Minister Mauro Vieira stated that he met with Secretary of State Rubio on Wednesday and reiterated the country's willingness to restart negotiations on the tariff issue, which had stalled in June.

He also emphasized that the judicial case of Bolsonaro cannot be included in the negotiation scope. Lula also reiterated the same position when interviewed on Tuesday.

Local time on July 28, President Lula gave a speech at the power plant inauguration ceremony. Screenshot from the video

Despite the exemptions of multiple goods, former Brazilian Trade Minister Weber Barbalho warned that it is still too early to celebrate. He pointed out that Brazil has about 3,000 export commodities to the US, and the impact of tariff shocks remains unavoidable.

The executive order issued on Wednesday did not include beef and coffee, the two major Brazilian exports to the US. The chairman of the Brazilian Meat Exporters Association (ABIEC) previously estimated that the new tariffs would cause a loss of 1 billion dollars in beef exports in the second half of the year. The Brazilian Coffee Exporters Association (Cecafe) stated in a statement that it will continue to push for the inclusion of coffee in the exemption list.

Facing the new US tariffs, earlier on Wednesday, Lula left the event early. He claimed that he would "defend the sovereignty of the Brazilian people according to the measures announced by the US President" and called the day a "sacred day for defending sovereignty."

According to reports, Lula later convened an emergency meeting with some ministers at the Planalto Palace, including Justice Minister Ricardo Lewandowski and Attorney General Jorge Messias.

On Tuesday, during an interview with US media, Lula clearly stated that he would not obey Trump's orders, "Please believe, we are dealing with this matter in the most serious way, but seriousness does not mean groveling. I respect everyone, and I hope to be respected."

"We are aware of the US economic strength, and we acknowledge its military power and technological scale," he added, "but this will not make us afraid."

Lula said that Brazil is considering imposing retaliatory tariffs on US exports and directly accused Trump of infringing on Brazil's sovereignty. He also said that if the "Capitol riot incident" happened in Brazil, Trump would face prosecution like Bolsonaro.

Lula emphasized that everything Trump did to help Bolsonaro will ultimately be paid for by the American people. They will face a situation where the prices of large quantities of goods dependent on Brazilian imports, such as coffee, beef, and orange juice, will rise.

"Neither the American people nor the Brazilian people should bear these, "he said, "this will turn a 201-year-long win-win diplomatic relationship into a double loss political deadlock."

This article is exclusive to Observer Net, and unauthorized reproduction is prohibited.

Original: https://www.toutiao.com/article/7533089849662865935/

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