Brazil government in touch with the US trade reps on tariffs

Author: Greg Michalowski | Category: News

Brazil government response to restoration of Brazilian tariffs

According to sources:
  • Brazilian government is in touch with US trade representatives and other agencies on Trump's moved to restore tariffs on Brazilian steel and aluminum
  • Brazilian government rejects Trump's claim that it is manipulating its currency
Earlier today Trump restored the tariffs on steel and aluminum from Brazil and Argentina.  He announced the actions in a tweet and in doing so, criticized the Fed for not devaluing the dollar by lowering rates and loosening policy. 

I guess that might imply that the US is responsible for the Brazilians manipulating their currency lower ; )  Maybe the Pres. should have kept the part about the Fed out of his argument for currency manipulation.  

Brazil government response to restoration of Brazilian tariffs_
 The USDBRL moved took out its 5 year high last week 4.2478 but has moved back below that level today.  

USDBRL

There will always be a debate on whether it is manipulation or is the US the economy stronger and therefore demands a higher currency.  The year on year growth in Brazil is 1.01% in the 2Q of 2019. THe 3Q estimate is for growth to come in at 1.0% again.  

They just released trade data for November which showed a trade surplus (overall) of 3428M which is off the recent low of 1206 in October and off the January high of surplus of 6428M.

The Brazil trade balance  


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