Trump mulls higher import tariffs on Brazilian goods

SAO PAULO (ICIS)–US President-elect Donald Trump said late on Monday that his administration may impose higher tariffs on goods from Brazil.

In a surprise press conference, Trump spoke at length about his proposed strategy to use import tariffs to make the US wealthier, before adding that many countries charge more tariffs on US goods than vice versa.

Brazil was included, but the single mention – almost in passing – had the corporate and financial circles in Brazil talking on Tuesday.

“We’re going to be treating people very fairly. But the word reciprocal is important, because if somebody charges us… If India charges us a 100% [import tariffs on US goods], do we charge them nothing for the same?” said Trump.

“India charges us a lot. Brazil charges us a lot. If they want to charge us, that’s fine, but we’re going to charge them the same thing. That’s a big statement.”

Asked by a reporter about concerns that higher import tariffs will prop up inflation, Trump replied, “Make our country rich. Tariffs will make our country rich.”

According to figures from the Brazilian government, total trade in goods between Brazil and the US was around $75 billion in 2023.

The US is Brazil’s second largest export market after China, and the third largest source of foreign products to Brazil, accounting for 15.8% of total Brazilian imports.

Chemicals trade group Abiquim had not responded to a request for comment at the time of writing.

In Latin America, Trump also said he will impose higher import tariffs on Mexican goods in his first day in office on 20 January. Mexican and Canadian goods are currently part of a free trade zone within the North American USMCA free trade agreement (FTA).

Earlier this month, Mexican chemicals trade group ANIQ expressed its concern about import tariffs given the integration between the chemicals sectors in both countries after nearly 40 years of free trade.

“The chemical industries of both countries are deeply integrated throughout their value chain: raw materials cross borders to be transformed into industrial chemical products, which return in both directions to become products with higher added value,” ANIQ said.

“The chemical industry once again expresses its support for collaboration and maintaining a solid commercial relationship that will boost economic growth and ensure North America’s competitiveness and sustainability in global markets.”