President Donald Trump’s decline in the import tariff brought a great comfort to the global financial markets and Brazil, according to the evaluation of Christopher Garman, CEO of the Collective Content partner in Eurasia in WW, CNN Brazil. For most countries, with the exception of China, the level of level rates of international trade tensions has contributed 10 % for most countries, with the exception of China.
Garman also establishes that this procedure places the world in a “better balance”. However, it indicates that this does not represent the abandonment of the protective strategy of the United States.
Impact on American definitions
Even after the decline, the average tariff for products imported by the United States remains above 20 %, an unprecedented level since 1910. In addition, the trade war with China remains intense, while maintaining the scenario of uncertainty in world trade.
The analyst notes that Trump’s decision may be decisive to determine whether the world will face a more softening economic slowdown or deeper stagnation.
Brazilian economy scenarios
In a more smooth frustration scenario, even with a possible stagnation in the United States, Brazil can benefit from the transfer of capital. In this case, Real will not suffer from such a sharp reduction, which may lead to a useful contraction of the Brazilian economy.
On the other hand, if the global economy enters a deeper stagnation, driven by a trade -off trade war, countries like Brazil will suffer greatly. Reducing the value of the currency will be more intense, which leads to a scenario of more inflation and less economic growth.
Jarman concludes that the degree of global economy discourse has become a major variable for the upcoming presidential elections in Brazil, to be held in 2026. The economic scenario that will be the result of the current commercial decisions will be a major impact on the country’s political and economic environment in the coming years.
