Brazil May Earn Up to US$ 7.4 Billion Due to China-US Trade War

07/02/2018 - 11h39

According to a study that Folha requested the National Industry Confederation (CNI) to conduct, the trade war between the United States and China means that potential Brazilian exports to both countries can reach up to US$ 7.4 billion (R$ 28.5 billion) per year.

The United States announced that tariffs concerning 818 Chinese products would go up to 25%, totalling US$ 34 billion ( R$ 131 billion) in terms of exports. The new tariffs will start taking effect on July 6th.

The US is accusing China of intellectual property theft, given that the country demands that American companies hand over technological know-how to Chinese state-run companies if they want to gain access to the Chinese market.

China announced retaliatory measures, applying tariffs on 545 American products that also reached 25%, totalling US$ 34 billion (R$ 131 billion), which will also start taking effect on July 6.

In general terms, Brazil, just like so many other countries, will be harmed by the trade war due to the impact that heavier protectionist measures can end up having on the global economy and in terms of commodity prices.

Some American products that will be affected by the new Chinese rates are products that Brazil already exports, such as pork, soybeans and seafood, and the demand for such products may increase significantly.

Currently, around 35% of Brazil's seafood exports - including fish, crustaceans and molluscs - are sold to China.

Translated by THOMAS MATHEWSON

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