In other tariff news, our South American correspondent Luis Vieira reports that tariffs are hitting the Brazilian ag machinery market hard. 

The tariffs imposed by the Trump administration at a rate of 50% to Brazilian products will completely interrupt all machinery exports to the American market, according to Cristina Zanella, director of Competitiveness, Economy and Statistics at the Brazilian Assn. of Machinery and Equipment Manufacturers (Abimaq).

“There will be a bigger impact starting next month (September). Exports will go down to zero, these tariffs have taken out all of our competitiveness in that (American) market,” said Zanella.

The U.S. represents 26% of Brazilian machinery exports or $300 million monthly, per Abimaq data.

“If you look at all countries, only India had a tariff as high as Brazil received. Some countries have a smaller difference (in tariffs) due to a high proportion of steel and aluminum,” added Zanella.

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