President Donald Trump delayed the implementation of 50% tariffs on Brazilian exports by seven days while exempting many products from the punishing levy.
The executive order signed on Wednesday said the tariffs are a response to policies and actions implemented by the Brazilian government and that constitute a threat to US national security. It says former President Jair Bolsonaro, who’s standing trial for his alleged participation in coup attempt against President Luiz Inacio Lula da Silva, has been victim of “politically motivated persecution.”
Trump’s decision came with a long list of exceptions, including orange juice and aircraft parts that benefit Embraer. The Brazilian plane maker has been working to explain the impact tariffs would have in its US operations, where it has more than 2,000 employees.
Brazil’s real briefly weakened by 1% against the dollar following the release of a White House fact sheet, but pared losses after the US administration said new tariffs on Brazilian imports would take effect in seven days.
Embraer shares reversed losses after it became clear it was mostly spared by the tariffs.
