MNI BRIEF: Brazil's Haddad -Tariffs Unlikely To Be Implemented

Brazil's Finance Minister Fernando Haddad said Thursday that the U.S. decision to impose 50% trade tariffs is not economically rational, but that there is room for negotiations and that he believes the measure will not be implemented.

"I believe this is an eminently political decision, because it doesn’t stem from any economic rationale. As everyone knows, the United States runs a surplus with South America as a whole, and with Brazil as well," Haddad said in an interview at TVT News Youtube channel, blaming it on an attempt by former President Jair Bolsonaro and his family to escape ongoing legal proceedings

U.S. Treasury Secretary Scott Bessent told Haddad in California that even with the 10% tariff, there was room to negotiate a reduction, Haddad said.

“We're talking about an unsustainable tariff, both from an economic and political standpoint. So, I don’t believe this situation will last.” ( See MNI INTERVIEW: No BCB Rate Hike Ahead, 2025 Cut Likely-Kanczuk)