Brazil urges U.S. to drop 50% tariffs on food, Embraer aircraft

The Brazilian government is asking the U.S. government to remove food products and Embraer airplanes from a 50% tariff list set to begin on August 1. This move is aimed at protecting jobs and keeping key trade flowing, according to a senior official familiar with the talks.”

Vice President and Trade Minister Geraldo Alckmin has spoken with U.S. Commerce Secretary Howard Lutnick three times in the past few days. Their talks focused mainly on stopping the tariffs from hurting Brazil’s food exports and the Embraer aircraft industry.

Embraer is the third-largest airplane maker in the world, behind Airbus and Boeing. The company has several planes ready for U.S. airlines. If these new tariffs go into effect, Embraer may face cancelled orders, job losses, and a financial hit similar to what it suffered during the COVID-19 pandemic.

A government insider said Brazil doesn’t want to appear to favor one sector over another. But the insider also said the country must protect the areas that face the biggest harm. That includes Embraer and Brazil’s orange and coffee farmers.

The U.S. is a major buyer of Brazil’s coffee and orange juice. Tariffs could stop this trade. Already, some citrus factories are slowing down, and farmers may leave fruit to rot because prices are too low.

Brazil’s Ports and Airports Minister, Silvio Costa Filho, said the government will “do everything in its power” to help Embraer. He also hinted that the government could give the company special credit support to survive the crisis.
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