USA does not go back in sanctions and Brazil runs against time

Entrepreneurs enter the game to convince the US that punishing Brazil also weighs in the pocket of the American consumer

The United States government does not intend to hurry to close trade agreements with other countries, even with the August 1 symbolic deadline approaching. The statement was made on Monday (21) by US Treasury Secretary Scott Bessent, in an interview with CNBC, reinforcing the Trump administration’s firm posture in the face of international negotiations.

“We will not hurry to close agreements,” said Bessent, noting that the government’s priority is to ensure the quality of treaties instead of meeting deadlines or meeting external expectations. According to him, the US is more interested in achieving advantageous terms for their economy than accelerating diplomatic processes only for schedule reasons.

Read too:
STF makes it clear that there will be no retreat in relation to Bolsonaro
Live controversial intimidation makes Eduardo Bolsonaro target PF
Research reveals less cruel paths against cancer

Asked about the possibility of extending the period of August 1 to countries that are advancing in productive negotiations with Washington, Bessent has left the final decision open: “We’ll see what the president wants to do.” He added that if the expected rates are in force, this may function as an additional incentive for business partners to yield at crucial points.

“I think a higher tariff level will push these countries more to reach better agreements,” he said, suggesting that the tax threat remains a strategic tool in the hands of the US government.

China on the radar: pressure for structural changes

Regarding business relationships with China, Bessent indicated that new conversations are about to happen. “There will be discussions in the very close future,” he said, but has not detailed specific dates or guidelines. The tone, however, was clear: the US expect more than punctual agreements.

The secretary criticized the Chinese stance by buying large volumes of Iranian and Russian oil – US -sanctioned commodities – and drew attention to what he called “The Elephant in the Room”: the need for great economic rebalancing from China. For Bessent, Beijing needs to adjust his growth model, reduce distortions in the global market and make room for fairer competition.

“We can start talking about other things, but unfortunately the Chinese still insist on practices that destabilize international trade,” he said.

In relation to Japan, Bessent stressed that the focus of the US government is to get concrete benefits for US producers and workers, not to interfere with Tokyo’s internal policy. “We are less concerned with what happens within Japan than to get the best possible deal for Americans,” he said.

Brazil under pressure: Government seeks to isolate trade from the political crisis

Meanwhile, in Brazil, the scenario follows tense. Since Friday (18), when President Donald Trump has announced a 50% surcharge on Brazilian products, the Brazilian government tries to scale the impacts of this measure and find ways to circumvent the crisis.

Negotiators of Itamaraty and the Ministry of Economy recognize that the week begins under a climate of great unpredictability. Unknowingly if Trump will announce new measures or partially retreat, the Brazilian diplomatic team works with the hypothesis that each new Tuitis of the president can completely alter the course of negotiations.

In this context, the strategy has been clear: isolate economy policy. As sectors aligned with former President Jair Bolsonaro, such as Deputy Eduardo Bolsonaro (PL-SP), intensify confrontation speech with Brazilian institutions-especially the STF-Itamaraty makes opposite movements. It seeks to demonstrate to the US that Brazil is a country with a rule of law, with solid institutions and legitimate legal proceedings, including regarding investigations into acts of January 8, 2023.

The intention is to prevent internal political tensions from being used as an argument to harden the American commercial position. Diplomats have reinforced with Washington authorities that the judicial process involving former President Jair Bolsonaro is independent and based on evidence, without political motivation.

Running Against Time

Until August 1, Brazil wages a real race against time. The goal is to convince the US to review, albeit partially, the application of excessive tariffs. There is concern that, without an effective response, the agro -export sector – one of the pillars of the national economy – can be harshly affected.

Despite the uncertainty, negotiators evaluate that the Lula administration has acted with assertiveness. Instead of reacting only in the diplomatic field, the strategy includes bringing entrepreneurs to the front line of the joints. Representatives of agribusiness, industry and technology sector are being mobilized to dialogue directly with American partners, showing the real damage that tariffs can also cause the US consumer.

“Today, more than ever, we need to show that Brazil is a reliable partner, even in the midst of political turmoil,” said an advisor to the Planalto Palace, on condition of anonymity.

A commercial chess game

The current moment reveals a complex board, where economics, foreign policy and domestic instability intersect. While the US use tariffs such as a lever to force concessions, Brazil tries to maintain its international credibility without succumbing to pressure or feeding narratives that can aggravate the climate of tension.

With the period of August 1 approaching – and the real possibility of being ignored or extended – one thing seems certain: international trade is increasingly going on a field of dispute where words, decisions and even tweets can be worth billions.

Fear of reprisals lock lobby in the US and threatens Brazilian production chain

The hope of the Brazilian government to mobilize US companies to pressure the White House against 50% tariffs on Brazilian products bumps into an unexpected obstacle: fear. Reports collected by CNN with large US importers show that while there is concern about the economic impacts of the measure, many prefer to act with caution – or even anticipate – not to irritate President Donald Trump.

The fear of direct or indirect retaliation of the American agent is paralyzing lobby initiatives that, at other times, would be natural. Instead of joint articulations with Brasilia to reverse the decision, some companies opt for contingency plans: exchange Brazilian suppliers for alternatives from countries with more favorable tariff treatment.

In recent days, representatives of Brazilian exporters – from tropical fruits to meat, through the aerospace industry and the coffee sector – have kept intense conversations with their commercial partners in the United States. The tone, in general, was of alignment: everyone recognizes that the surcharge is harmful, makes products more expensive and ends up burdening the end consumer. So far, the consensus was total.

But when it comes to acting, the enthusiasm cools. While the Brazilian side insists on asking formal political support – such as collective letters, congressional hearings, or meetings with White House advisors – the return has been shy, often involved in embarrassing silences or vague promises.

“We are working internally,” they say. “Let’s see what we can do.” But in practice, little advances.

Fear of becoming the target of Trump

The explanation is in the internal political climate of the US. Entrepreneurs and executives report in off that President Trump often sees any contestation to his commercial decisions as disloyalty. And those who dare publicly question their policies can quickly become the target of cutting tweets, tax investigations or regulatory barriers.

“It’s a high risk game,” said an executive from a large Chicago -based food company, who prefers not to identify himself. “We know the rates will cost us dearly, but we also know that lifting the voice against the president can cost even more.”

This scenario of self -censorship makes it difficult especially for Brazil’s plan to use pressure from the US private sector as a diplomatic lever. The idea was simple: if the profits of US companies are at risk, they would knock on the White House door demanding changes. Only this time the calculation has changed.

Plan B: Replace Brazil

Meanwhile, some of the largest importers of Brazilian products have already put their emergency strategy into practice. One of Brazil’s leading coffee buyers in the US, for example, has confirmed to CNN that it is diversifying its supply chain.

“We are evaluating suppliers of Colombia, Vietnam and Costa Rica – countries that, for now, do not face this aggressive tax rate,” said one director of the company, on condition of anonymity. “If the 50% rate is applied from August 1, we will have to reduce our purchases from Brazil. It is a commercial decision, not political.”

Change may seem technical, but the effects are deep. For the Brazilian rural producer, it means market loss. For the logistics sector, less shipments. For gearbox, additional pressure. And in the long run it can signal that Brazil is being seen as an unstable commercial partner – not for structural failures, but because it is often at the center of political turmoil that extrapolate borders.

Brazilian strategy under pressure

Given this, the Brazilian government adjusts its speech. In addition to keeping diplomatic channels open with the Department of Commerce and the US Commerce Representative Office (USTR), it begins to focus on specific sectors where the impact of the tariff will be more sense in the US – such as agribusiness, which provides essential commodities for the American food industry, and the aluminum industry, which supplies part of civil and automotive construction.

There are also efforts to show concrete data: how much the American consumer will pay more for a coffee package, a liter of frozen orange juice, or parts used on Embraer aircraft. The intention is to turn the argument into something tangible – and difficult to ignore.

But without the strong and visible backing of the US private sector, the mission is more arduous. “We are alone on the field,” admitted an experienced Itamaraty negotiator in a reserved conversation. “We want to believe that common sense will prevail, but meanwhile Americans are already looking for other suppliers.”

A warning for the future

The episode reveals a new reality in global trade relations: economic decisions are increasingly subordinate to volatile political calculations. In the case of Brazil, the combination of an unpredictable US government with a polarized domestic scene creates a constant risk environment.

More than a punctual crisis, the moment serves as a warning: dependence on external markets requires institutional stability, consistent dialogue and, above all, the ability to isolate trade from political fighting. Because, while leaders discuss power, who pays the price is often the producer, the exporter and, in the end, the Brazilian worker.

And, given the uncertainty of August 1, a question echoes in the corridors of Brasilia, São Paulo and the southern coffee plantations:
“Will Brazil this time be able to convince who rules?” Or are we going to lose space for those who know how to adapt faster?

With information from CNN and CNBC*