What is happening between Mercosur and Canada? After more than a decade of stalled talks, the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay) and Canada announced in September 2025 the formal resumption of negotiations for a free trade agreement. The decision was confirmed at a meeting between representatives of the two blocs during the United Nations General Assembly in New York and represents a strategic step toward strengthening economic ties between South and North America. This move is not just symbolic: it could pave the way for one of the largest trade agreements in the South American region in recent years, with direct impacts on the economies of millions of people—from farmers to small business owners. Why does this agreement matter? A free trade agreement between Mercosur and Canada has the potential to eliminate or reduce tariffs on thousands of products, facilitate investment, increase business competitiveness, and generate new job opportunities. For ord...
Brazil's trade deficit with the United States: an unequal relationship:
Despite being one of the largest economies in Latin America, Brazil maintains an unbalanced trade balance with the United States. According to data released by O Globo, in 2024 Brazil imported about $ 44 billion in American products, while Brazilian exports to the US added only $ 42 billion. That is, the country closed the year with a commercial deficit of approximately $ 2 billion.
This result puts Brazil among the few business partners that maintain an unfavorable relationship with the United States. In practical terms, it means that Brazil buys more than it can sell to the US market, something that aggravates external dependence and reduces the competitiveness of national industry.
In addition, the deficit occurs even in sectors where Brazil has export tradition, such as agribusiness and mining. Factors such as technical barriers, sanitary requirements and, especially, Trump's tariff wars contribute to this imbalance. The "protection of the American economy" rhetoric has often translated into additional obstacles for Brazilian products to enter the US market.
This dynamic reinforces the need for Brazil to rethink its position in global trade. Maintaining ties with the US is strategic, but it is essential to expand agreements with other countries and reduce the dependence on markets that impose severe trade barriers - often based on political decisions, such as Trump and their lies, rate wars.
Trump with his Tax Wars:
In recent years, Donald Trump's name has become a symbol of controversy and tension on the global stage. His approach to international politics, marked by controversial statements and aggressive economic policies, directly affected several countries—including Brazil. One of the most explosive fronts of his administration was the imposition of trade tariffs, used as a geopolitical weapon amid rhetoric often distorted from reality.
Amid dubious facts, populist promises, and unilateral actions, the expression "Trump and his lies, tariff wars" gained currency as a summary of the period. This article examines how these attitudes affected Brazil and other nations, exploring the economic impacts and lessons learned from this turbulent phase of American diplomacy.
The origins of the trade confrontation:
Their focus was on protecting American industry from foreign competition, promoting a complete review of trade agreements and imposing tariff sanctions on imports.
Although official rhetoric suggested a defense of the American economy, many of the arguments used lacked foundation. The repetition of unfounded claims ended up creating a climate of misinformation that legitimized actions with profound international repercussions—especially on the global trade in steel, aluminum, and agricultural products.
Brazil, a major steel supplier to the US, was directly hit by tariffs imposed in 2018: 25% on steel and 10% on aluminum. The argument was "national security," an unusual claim for an allied and peaceful country. Trump even claimed that Brazilian steel was being sold below fair value, harming American competitiveness.
However, market analyses showed that the prices charged were within international averages and posed no real threat. Even so, the tariffs remained in place, harming Brazilian industry and increasing uncertainty in trade ties between the two countries.
Later, Trump again accused Brazil—this time of manipulating the exchange rate to favor exports. Brazilian and international economists rejected this idea, pointing out that the appreciation of the dollar against the real was linked to macroeconomic factors and global instability, not deliberate actions by the Brazilian government.
Lies that affect the whole world
Trump's misleading statements weren't limited to the domestic political arena. When the US president distorts information to inform economic decisions, the repercussions ripple across the world. Tariffs imposed based on false premises undermine international agreements, affect global prices, and generate diplomatic tensions.
Brazil, for example, was forced to reevaluate its strategic position relative to the US and even considered retaliation. However, the consequences of these measures tend to directly impact local consumers and producers, making the response a delicate matter.
The truth is that the "tariff wars" created by Trump, supported by half-truths and manipulated statistics, have caused prolonged instability and losses on various levels.
How Brazil can protect itself in the current scenario
For Brazil, the path forward is to diversify its trade relations, seeking new markets and strengthening strategic alliances with blocs such as Mercosur, the European Union, and Asian countries. Reducing dependence on the United States is a way to minimize vulnerability to external political shocks.
Investing in innovation, adding value to export products, and focusing on modern bilateral agreements are measures that can shield the national economy from impulsive tariff wars.
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