INSUBCONTINENT EXCLUSIVE:
previously embattled by opposition in Congress, now sees traditional rivals standing with him after U.S
President Donald Trump announced a sweeping 50% tariff on all Brazilian exports to the United States.The U.S
is a key market for Brazilian products, including oil, iron, coffee, and agricultural goods
These economic ties are significant: in 2024, Brazil exported nearly $42 billion worth of goods to the U.S
business and industrial sectors
The trigger for these tariffs was not a trade dispute, but a political demand.Trump made tariff relief conditional on Brazil dropping its
opposition.When the tariff announcement hit, however, this group quickly reversed course
in Brazil.The government moved swiftly to limit economic fallout, forming an emergency committee under Vice President Geraldo Alckmin to
support affected industries and organize negotiations.Financial markets reacted to the uncertainty, and companies scrambled to assess risks
to exports and employment
This episode demonstrates how a foreign policy decision can cut across political divides in Brazil.Lula gained critical political breathing
room, at least for now, as leaders from business, labor, and regional governments prioritized national interests over partisan divides.The
months ahead will test this unity as negotiations progress and Brazil copes with the real costs of disrupted trade.
