U.S. Tariff Hike May Accelerate Mercosur–EU Trade Agreement

The steep increase in trade tariffs announced by U.S. President Donald Trump could accelerate negotiations for a trade agreement between Mercosur and the European Union, according to Jorge Viana, head of the Brazilian Trade and Investment Promotion Agency (Apex).

“I don’t think Brazil should focus on what advantage we can get from this. After all, President Lula supports multilateralism and advocates for agreements. But obviously, any analyst can see that if the U.S. succeeds in implementing these measures, one possible consequence could be accelerating the Mercosur–EU agreement,” Viana stated. He added that some European leaders have already expressed interest in fast-tracking the deal’s ratification.

Viana emphasized that while the new U.S. tariffs could open up trade opportunities for Brazil and other nations, they will also pose significant challenges. “Before the opportunities come the difficulties. It’s a major risk. Some analysts are already saying that the U.S. may be ushering in the era of China,” he noted.

Trump’s new tariffs vary by region: 10% for Latin America, 20% for Europe, and 30% for Asia. Despite the 10% rate applied to Brazil, Viana said he sees no real advantage for the country and warned that the move would harm global trade.

“I don’t see any benefit in a scenario where global trade relations worsen. The United States introduced the world decades ago to the idea of a free market, conglomerates, and trade agreements—they were the ones promoting this, claiming it was better for the world. And in truth, to build a more peaceful world, you need more transactional exchange between countries,” he said.

Viana also pointed out that while global instability could lead to increased investment in Brazil, the overall context will damage everyone. “An insecure world, a world in conflict, is bad for everyone—including Brazil. That’s my view—it will be bad for all, regardless of whether you win a little here or lose a little there,” he concluded.

Source: Globo Rural

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