Argentina has the lowest tariff and Brazil, the highest

The new trade tariffs imposed by the United States, under the leadership of Donald Trump, will come into effect with rates ranging from 10% to 50%.

Brazil was the only country to receive the maximum rate of 50%, while Argentina received the lowest rate of 10%. This differentiation reflects not only trade criteria but also political alignments.

Argentina, under Javier Milei, has strengthened relations with the U.S. and Trump, adopting similar ideological and economic stances, which ensured the country preferential treatment.

In 2024, the U.S. had a trade surplus with both countries, yet Brazil was still penalized with the highest tariff. The decree signed by Trump goes beyond economic justifications: it accuses Lula's government of threatening U.S. national security, interfering in its economy, violating human rights, and politically persecuting former president Jair Bolsonaro.

The text also criticizes measures by the Brazilian Supreme Court and Brazil's alignment with BRICS in initiatives aimed at weakening the dollar as a global currency.

The American response even included individual sanctions, such as the revocation of Minister Alexandre de Moraes' visa and the use of the Magnitsky Act against him. In contrast, Milei has openly adopted a pro-U.S. stance, expressing interest in free trade agreements with the Americans, attacking Mercosur, and publicly praising Trump.

In a post, he even ironically compared his smiling expression next to Trump with his serious demeanor next to Lula.

With the surcharge imposed on Brazil, Argentina sees an opportunity to increase its share in trade with the U.S., although there are concerns about export diversion.

At the same time, the Argentine government announced it would grant citizenship to major foreign investors, in line with U.S. security standards, further reinforcing bilateral rapprochement.

Source: CNN Brazil

$BTC $ETH $BNB