SAO PAULO, July 14 (Xinhua) -- The latest 50 percent tariffs announced by the United States on Brazil's exports could lead to a 0.41 percent drop in the country's GDP, a report revealed on Monday.
According to the report of Brazil's prestigious think tank Getulio Vargas Foundation (FGV), the tariffs proposed by U.S. President Donald Trump could potentially reduce Brazil's food exports to the United States by up to 75 percent, generating a GDP contraction of up to 0.41 percent.
Brazil's agribusiness, a global food powerhouse, accounts for around 30 percent of exports to the U.S. market with products such as coffee, sugar and orange juice.
Even if the U.S. government backs down on the threatened tariffs, "the climate of insecurity in international trade" is already eroding the bilateral trade relationship, since the United States is Brazil's second-largest trade partner, the report said. It also accused Trump's tariffs against Brazil of violating WTO rules.
On Wednesday, Trump announced a 50 percent tariff on Brazilian goods imported into the United States starting Aug. 1. ■
