Brazilian vice president and minister of development, industry, commerce and services Geraldo Alckmin has recently come together virtually with over 130 executives from mining companies associated with the Brazilian Mining Institute (IBRAM) to discuss the potential impact of a 50 percent US tariff on Brazilian products, including minerals, set to begin on August 1. Representing more than 85 percent of Brazil’s mineral output, the companies explored ways to mitigate trade disruptions.
Mr. Alckmin emphasized the need for diplomatic dialogue and suggested requesting a 60–90-day delay to allow time for negotiations, noting the risks to both economies and ongoing shipments and contracts. He labeled the situation a “lose-lose” for Brazil and the US and expressed hope for a constructive resolution.
When asked about organizing a business mission to the US to engage with American companies and officials, Alckmin strongly supported the idea, calling it an important complement to ongoing diplomatic efforts. He noted that US businesses, given their mineral and equipment trade with Brazil, could pressure the US government to open talks. Further planning for the mission, including its scope and participants from other sectors, is still underway.
Speaking on behalf of the associated mining companies, Raul Jungmann, president of IBRAM, voiced strong concern over the potential for the Brazilian government to adopt reciprocal tariffs on US imports, a move that could have unintended consequences for Brazil’s own industrial competitiveness. He warned that a surcharge on machinery imported from the US would raise annual operational costs for the domestic mining sector by around $1 billion, affecting the acquisition of larger equipment, such as trucks with a payload capacity of over 100 tons, excavators and loaders.