Donald Trump got angry on being called a pirate, then imposed 25% tariff on Brazil, know what is the matter

US Tariff on Brazil : Tension is increasing in trade relations between America and Brazil. America has decided to impose 25 percent tariff on many goods imported from Brazil. According to the US administration, this step has been taken after a year-long review of Brazil’s trade policies.

A senior US official said that the new tariff will come into effect from July 22. However, some essential products are excluded from this additional charge. These include beef, coffee and some selected aircraft parts coming from Brazil. Apart from this, those products which are not produced in America have also been exempted.

Why did America take this decision?

US Trade Representative (USTR) Jamieson Greer says that some of Brazil’s trade policies have been against the interests of American companies and workers. America alleges that American companies are not getting equal opportunities in Brazil.

The US has also raised questions about Brazil’s digital trade policies and its government digital payment system ‘PIX’. US officials claim that these policies are affecting fair competition.

This action has been taken under Section 301 of the American Trade Act. Under this rule, America has already examined the trade policies of many countries and in some cases has taken steps to impose additional duties.

Trump administration’s tariff policy continues

In the current economic policy of America, import duty is being made a major weapon to promote domestic industries. The US administration says that such steps will benefit American companies and workers.

Brazil protested

The Brazilian government has reacted strongly to this decision of America. Brazil says that imposing 25 percent tariff is a unilateral and unfair decision.

According to the Brazilian government, the US has gained approximately $424.5 billion in trade with Brazil over the last 15 years. Brazil has also rejected America’s allegations, in which questions have been raised regarding digital payment systems, online platforms and environmental policies.

Brazil has said that it will take necessary steps to protect its national interests, employment and economy. Under this, retaliatory action, search for new trading partners and legal options under World Trade Organization (WTO) rules can be considered.

Global trade may be affected

America and Brazil are among the world’s largest economies. The increasing tension between the two countries could affect global trade. If a solution is not found through talks between the two countries, then its impact can be seen on supply chain, export-import and many industries.

At present, the eyes of the whole world are on how Brazil responds to this decision and whether both the countries are able to resolve this dispute through talks.

Let us tell you that recently Brazilian President Luiz Inacio Lula da Silva had sharply criticized the US plan to impose a 20% tariff on ships passing through the Strait of Hormuz. He had said that no country, especially America, has the right to behave like pirates on international sea routes.