Against tariffs, the US wants Brazil to give in in strategic sectors

In the agreement with the Australians, the objective was to increase the supply of rare earths and other essential minerals, a Trump weapon to combat China’s dominance in the market. Australian Prime Minister Anthony Albanese said the deal will support an $8.5 billion project that will expand his country’s mining and processing capacity. The agreement includes US$1 billion to be invested by the two countries in projects in the US and Australia over the next six months.

Commitment to investments by Brazilian companies in the USA. Trump wants guarantees that he will be able to sell his main commercial banner to the American public, which involves attracting investment. Data from some of the largest Brazilian companies operating in the US suggests that approximately US$7 billion in new investments could be made in the short term if tariffs on Brazil were reduced.

Today, Brazilian companies already support more than 110,000 jobs in the US and maintain operations in at least 23 states, with a stronger presence in Florida, Georgia, Texas and Tennessee.

Access to government purchases. The Trump government wants access to the billion-dollar public bidding market in Brazil, especially given the risk of an agreement between Mercosur and the European Union. Under the treaty that could be signed by the end of the year, Europeans would have better conditions to win contracts with the federal government in Brazil.

The Brazilian private sector admitted today, behind the scenes, a certain frustration at the lack of an announcement of a preliminary agreement between the two presidents after the meeting in Malaysia. Amcham, for example, issued a note signaling that it advocates a certain rush in negotiations. Since Trump’s application of the tariffs, there has been a substantial drop in national exports to the American market.

Brazilian government sources celebrated the atmosphere of the meeting between the two presidents. But diplomats admit that the crisis has not yet been defused.