In a situation of unjustifiable external aggression like this one, the Finance Ministry is preparing for all scenarios, Haddad said.

On Monday, Brazilian Finance Minister Fernando Haddad announced that his country already has “contingency plans” in place in case negotiations with the United States fail and a 50% tariff on Brazilian imports takes effect on Aug. 1.

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“Brazil has never left and will never leave the negotiating table,” he said, but acknowledged the possibility of not reaching any agreement with Donald Trump’s administration in the next 10 days.

“President Lula da Silva is determined that we remain permanently committed. We sent a second letter last week, in addition to the one sent in May. We will insist on pursuing a trade agreement,” the Finance Minister said.

Haddad said that if the measure goes into effect, the Brazilian government is considering activating “support mechanisms for sectors” that could be affected.

“In a situation of unjustifiable external aggression like this one, the Finance Ministry is preparing for all scenarios. We have a contingency plan for any decision that may be made,” he said.

Haddad attributed the diplomatic rift between Brazil and the U.S. to Trump’s personal relationship with former Brazilian President Jair Bolsonaro, who is facing criminal proceedings in Brazil’s Supreme Court for leading a coup plot against Lula da Silva after losing the 2022 election.

On July 9, in justifying the additional 50% tariff, the U.S. president claimed Bolsonaro was the victim of a “witch hunt” and demanded an end to the “persecution” of his ally. At the same time, the Office of the U.S. Trade Representative launched an investigation into Brazil over alleged discriminatory trade practices.

The crisis escalated again on Friday when Brazil’s Supreme Court imposed new precautionary measures on Bolsonaro for conspiring with the Trump administration to sanction Brazil. These included a nighttime curfew and an electronic ankle monitor.

In retaliation, the United States responded shortly afterward by revoking the visas of several Brazilian Supreme Court justices, including Justice Alexandre de Moraes, who is overseeing the case against Bolsonaro for attempting a coup. For Haddad, the entire conflict stems from the existence of “a far-right political force in Brazil that is working against national interests.”

teleSUR/ JF

Source: EFE

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