Brazil calls virtual BRICS meeting Sept. 8 to discuss US tariffs

Brazil calls virtual BRICS meeting Sept. 8 to discuss US tariffs

Brazil has proposed to convene an extraordinary BRICS summit on September 8 to coordinate a common response to trade challenges posed by the United States. The initiative, reported by Valor Econômico, is overseen by Brazil's chief presidential advisor, Celso Amorim, and is planned to be held in a video conference format. Brazil, which holds the BRICS presidency in 2025, aims to address the recent U.S. tariffs that have disrupted key sectors such as aerospace and agriculture [1].

The call for the summit comes after U.S. President Donald Trump signed a decree to increase tariffs on Brazilian products up to 50%, with some strategic sectors like aviation, energy, and agriculture exempt from restrictions. Brazilian President Luiz Inácio Lula da Silva criticized the U.S. approach, noting that negotiating without a collective position is akin to "a worker without a union trying to negotiate with the boss" [1]. The summit is expected to involve Brazil, Russia, India, China, South Africa, and potentially new members like Iran.

The BRICS summit, originally planned in Rio de Janeiro on July 6-7, was disrupted by the absence of key leaders due to international warrants and scheduling conflicts. This time, the focus will be on addressing the economic pressure and potential retaliatory measures against the U.S. tariffs. The U.S. Court of Appeals has ruled most of Trump's tariffs illegal, which could influence the discussions [2].

Investors should monitor the developments closely, as the U.S.-Brazil trade conflict has become a flashpoint in the broader geopolitical realignment of global markets. The aerospace sector, led by Embraer, is acutely vulnerable, with tariffs potentially adding $9 million per aircraft in costs. Brazil is pivoting to BRICS partners to offset U.S. losses, including exploring joint ventures with China and Russia. The agricultural sector has also been severely disrupted, with a 60% decline in U.S. imports of Brazilian beef and coffee. However, Brazil's strategic redirection of exports to China, the EU, and Mexico has mitigated some losses [2].

Emerging markets remain attractive despite the short-term turbulence, driven by Brazil’s access to unique macro cycles and structural growth opportunities. Investors should prioritize sectors aligned with Brazil’s green energy goals, such as renewable infrastructure and critical minerals. Hedging strategies, including currency forwards and dollar-linked ETFs, are critical to managing exchange rate risks. Diversification into BRICS-focused funds and ESG-aligned investments in infrastructure and renewable energy can further insulate portfolios from trade war volatility [2].

References:
[1] https://unn.ua/en/news/brazil-calls-for-brics-summit-over-us-trade-threats
[2] https://www.ainvest.com/news/geopolitical-trade-tensions-assessing-impact-brazil-retaliation-global-commodity-aerospace-markets-2508/