Industry in Manaus could benefit from Trump’s taxation, authorities assess

By Marcela Leiros – From Cenarium

MANAUS (AM) – The announcement by the President of the United States, Donald Trump, regarding the taxation of foreign goods imported into the North American country could create new opportunities for Brazil and, more specifically, for the Manaus Free Trade Zone (ZFM). This is the perspective of commercial representatives of the State, although they assess that it is still too early to establish certainties.

Even though the United States is not the main trade partner of Amazonas in terms of exports, the country imported from the State in 2024 a total of US$ 99.8 million in FOB value (the price of goods including the cost of the product and transport to the port of shipment), as recorded on the website of the Ministry of Development, Industry, Commerce and Services (MDIC). Germany was the main destination for Amazonian exports, with a total of US$ 157 million.

On Tuesday, the 2nd, Trump confirmed that the United States will start charging a 10% tariff on all imports from Brazil, as part of the decree establishing reciprocal tariffs on trade partners. Besides the South American country, another 184 nations will also see their products taxed. For some, such as China, this tariff will be 34%.

Speaking to CENARIUM, the Secretary of Economic Development, Science, Technology, and Innovation of Amazonas, Serafim Corrêa, commented on the “tariff shock” and how it could represent a new opportunity for the State regarding new trade relations.

“This could open an opportunity, and we need some time to develop it. Speaking in terms of perspective, countries will negotiate among themselves. What we will stop selling to the United States, we will sell to other countries, and we will also buy from other countries,” said Corrêa.

The Secretary also observed that the taxation could be a “shot in the foot” for Trump. “He is going to isolate himself. I believe that international trade will intensify from the moment the United States creates barriers for itself,” he added.

The President of the Federation of Industries of the State of Amazonas (Fieam), Antonio Silva, also sees new opportunities for Brazilian products. Among the main goods exported to the United States from the Free Trade Zone are motorcycles, naphtha, self-service machines, and wood.

“We need to assess the measure in a broader context. The imposition of tariffs was applied to various countries, not just Brazil. This means that other competitor countries of Brazil were taxed at even higher rates, which could represent an advantage for national products,” he stated.

Taxations

Donald Trump nicknamed yesterday “Liberation Day” because, according to him, it marks the moment when the USA frees itself from what he called “unfair” foreign trade. The application of tariffs on products and trade partners aims to strengthen the country’s economy, reverse trade deficits, and recover the competitiveness of the North American industry.

The first tariff measure was announced on 1st February. On that occasion, Trump imposed a 25% tariff on products from Mexico and Canada, justifying it by claiming that these countries were responsible for the arrival of “countless and horrible” immigrants in the USA, the influx of drugs into the country, and the deficit in public finances.

In a joint statement from the Ministries of Foreign Affairs and Development, Industry, Commerce, and Services, the Brazilian federal government stated that it does not rule out the possibility of appealing to the World Trade Organisation (WTO) against the American tariff measures. However, it emphasised that the priority at this moment is to negotiate the reversal of the measures announced by President Donald Trump.

According to the statement, the taxation violates WTO rules. Additionally, commercial statistics from the US government itself were presented, highlighting that the trade balance is already more advantageous for the United States, as Brazil imports more from the US than it exports to that country.

The text also emphasised the approval by the National Congress of the Economic Reciprocity Bill, which allows the Brazilian government to adopt measures against countries that impose trade barriers on Brazilian products.