BRASILIA, July 29 (Reuters) - Brazil's government has
asked the U.S. to exclude food products and Embraer's ( ERJ )
aircraft from the 50% tariff it plans to impose on Brazilian
goods starting August 1, a source familiar with the matter told
Reuters on Tuesday.
The request was the main topic of recent discussions between
Brazilian and U.S. officials, the source said, including three
calls between Brazil's Vice President and Trade Minister Geraldo
Alckmin and U.S. Commerce Secretary Howard Lutnick in recent
days.
Newspaper Folha de S.Paulo first reported the request on
Monday.
The press office of Brazil's Development and Trade Ministry,
which is headed by Alckmin, denied the report, saying the
government is working to suspend the tariffs across all sectors.
But a Brazilian official, speaking on condition of anonymity
to discuss the sensitive topic, acknowledged that the government
had some priorities that it could not make public because of a
confidentiality clause in the negotiations.
It also wants to avoid the perception that it is trading off
some sectors for others, the source said. But the same person
added that some sectors needed to be prioritized in the talks
due to the severity of the impact in certain areas.
Embraer ( ERJ ), the world's No. 3 planemaker after Airbus
and Boeing ( BA ), is currently the government's top concern,
with dozens of pending deliveries to U.S. airlines. It has said
a 50% tariff could trigger order cancellations, deferred
deliveries and job cuts, hammering its revenue like the pandemic
did.
Ports and Airports Minister Silvio Costa Filho said the
government would do "everything within its power to help
Embraer ( ERJ )," hinting at potentially providing the planemaker with
credit lines.
In addition to aircraft, the U.S. is also a large buyer of
Brazilian food products, such as coffee and orange juice.
Trump's tariff plans could devastate Brazil's citrus belt,
where factories are already scaling back production and orange
farmers are considering leaving fruit to rot due to low prices.
Tariffs could also effectively halt the flow of Brazilian coffee
to the U.S.