Haddad denies taxation of “big techs” in retaliation against the US
Measure would be in response to the Trump government’s intention to impose 25% tariffs on steel and aluminum in all countries
Finance Minister, Fernando Haddad, denied that the government plans to tax US big techs if President Donald Trump’s (Republican) intention to impose 25% tariffs on steel and aluminum in all countries comes true. The head of state said that the announcement will be made today.
In a publication on X, the head of the Treasury said that the government of Luiz Inácio Lula da Silva (PT) “made the sensible decision to only express itself in a timely manner based on concrete decisions and not on announcements that may be misinterpreted or reviewed”. He said he will “wait for the president’s guidance”.
The Lula government’s alleged intention to tax the technology giants was reported in a report by Folha de S. Paulo. It would be, according to the text, a way to respond in the midst of Trump’s alleged world trade war without harming Brazilian industry.
TARIFFS WOULD AFFECT BRAZIL
The United States is the main buyers of iron, steel and aluminum in Brazil. It exported US$ 6.37 billion in iron, steel and aluminum products in 2024, with US$ 6.10 billion being iron and steel and US$ 267 million being aluminum.
The survey was made by Poder360 based on Comex Stat, which has official trade balance data released by the Mdic (Ministry of Development, Industry, Commerce and Services). This digital newspaper considered codes 72,73 and 76, which are “cast iron, iron and steel”, “cast iron, iron or steel works” and “aluminum and its works”.
In 2020, under the Presidency of Jair Bolsonaro (PL), Trump imposed a taxation of 25% on steel and 10% on aluminum. Then, it granted duty-free quotas to several trading partners, including Brazil. In that year, Brazil’s iron, steel and aluminum exports to the US totaled US$ 3.03 billion, with US$ 2.85 billion in cast iron, iron or aluminum and US$ 171 million in aluminum.
In 2018, Trump also imposed 25% tariffs on steel and 10% on aluminum, but then granted exemption quotas to several trading partners, including Canada, Mexico and Brazil.
The export of the products was US$ 4.51 billion in 2018, with an increase of 27.6% compared to 2017.
The USA is the largest iron and steel destination in Brazil. They are in the 2nd position when it comes to aluminum. Brazil exported $15.6 billion in iron, steel and aluminum in 2024. Of the total, 40.8% went to the United States.
Poder 360
translation: Hotspotorlando News