The heavy price of Trump on Brazil should push the country to China | Donald Trump News

When Brazilian President Luiz Inacio Lula Da Silva was in China earlier this year for his third meeting with Xi Jinping since his return in office in 2023, he praised the relationship between the two countries as “indestructible”.

This proximity will probably increase even more after the announcement by US President Donald Trump by a 50% rate on Brazilian imported goods for openly political reasonssay the experts.

“The reality is that today, the relationship between Brazil and China is much more positive and promising than that of the United States,” said Tulio Cariello, director of content and research in Brazil-Chine Business Council (CEBC).

Trump’s commitment to inflict A 50% price on BrazilDue to the entry into force on August 1, sent shock waves throughout Brazil, especially since under the so-called rates of the “Liberation Day” that Trump had announced on April 2, Brazilian imports would be taxed at 10%.

This was also much less than percentages inflicted on other Brazilian competitors on the American market, which aroused a feeling of opportunity among the companies in the most populous country in South America.

Consequently, the sudden decision of a 50% rate was a coarse shock, especially for sectors which are large exporters in the United States, such as planes, car parts, coffee and orange juice.

The 50% rate came in the heels of The Summit of the BRICS In Rio de Janeiro, where the leaders of developing countries have raised “serious concerns” concerning the increase in prices which, according to them, were “incompatible with the rules of the WTO (World Trade Organization)”.

In a letter justifying the price, Trump directly linked the measure to the current current situation of former Brazilian president Jair Bolsonaro, which he called a “witch hunt”. Bolsonaro, often nicknamed “Trump of the Tropics”, is being tried to have pretended to orchestrate a coup to stay in power despite his electoral defeat in 2022 against Lula.

Trump also wrongly claimed a trade deficit with Brazil. Brazil has a deficit of around $ 7.4 billion with the United States and an excess of around 31 billion dollars with China.

The political nature of the prices has marked a lively gap in Trump’s usual justification, causing a general condemnation through the political spectrum of Brazil and China.

“Prices should not be a tool for coercion, intimidation or interference,” said a spokesman for the Chinese Foreign Ministry.

Using prices for a political lever effect rather than economic reasons, Trump may tarnish the reputation of the United States as a reliable trading partner, according to experts, making China more stable and predictable in comparison.

“China, to date, has not shown no indication of reversal of sudden decisions or changes,” said Mauricio Weiss, professor of economics at the Federal University of Rio Grande Do Sul.

Strengthen Chinese links

The Asian country has exceeded the United States as the largest export market in Brazil in 2009, and the commercial and investment links of the two countries have not been stronger since then.

A notable signal for deepening links came on Monday, when the Brazil Ministry of Finance announced its intention to create a tax consultancy in Beijing. Brazil has only four other offices of this type in the world – three in South America and one in the United States.

“The motivation is not politically motivated, but rather justified by the growing importance of bilateral trade relations and the need to deepen cooperation on tax and customs issues,” the Ministry of Brazil said in a press release in Al Jazeera.

China has sought to fuel its own interior growth thanks to access to natural resources and raw materials, such as oil, iron ore, copper, lithium and agricultural products.

But since 2007, China has also invested more than $ 73 billion in Brazil, according to the CEBC. A large part of these funds flock to strategic sectors such as energy, infrastructure, agro-industry and technology.

“The United States is increasingly investing in Brazil, but China’s investments are more targeted and coordinated between governments,” said Weiss.

Chinese products are also increasingly common in Brazil. Electric cars manufactured by the Chinese manufacturer byd are now a current show, with seven out of 10 electric vehicles sold in Brazil from the company.

The growing presence of China at the expense of the United States was the purchase by Byd of a massive factory previously owned by Ford in the northeast state of Brazil in Bahia.

The two countries have also agreed to explore the integration of transport. These plans include a bio-oceanic railway corridor connecting Brazil to the port of Chacay built by Chinese in Peru.

The inauguration of Xi in November of the mega -port – where total investment should exceed $ 3.5 billion in the next decade – has put China’s regional influence on brutal display.

Other Latin American nations, including Peru, Colombia and Chile, also reported their rapprochement with China, in the midst of Trump’s fears for the region. He has already undertaken to “resume” the Panama Canal, including for force.

But some have pointed out that the deepening relationship between China and Brazil does not mean that the South American country will begin to export the goods it currently sends to the United States in China, because the two countries buy very different products from Brazilian companies.

“Brazil will not export products made in China. It does not make much sense,” said Livio Ribeiro, a researcher at the Brazilian Institute of Economics of the Getulio Vargas Foundation.

Even then, Chinese investments could play a crucial role by allowing Brazil to strengthen its industrial capacity and to diversify its economy, according to Weiss.

“The simple fact of being able to produce more of these products at the national level and for other South American partners will already be an opportunity for significant growth,” said Weiss.

Speaking during a state visit to China in May, Lula said that Brazil and China will be “essential partners” because “China needs Brazil and Brazil to need China”.

“Together, we can make the world respected worldwide in the world like never before,” added Lula.