JUANA SUMMERS, HOST:
Leaders of some of Brazil's largest industries are breathing a sigh of relief today. Many got a pass from President Trump's tariff threat. Yesterday, the White House released a long list of Brazilian goods exempt from a pending 50% tax. But as NPR's Carrie Kahn reports, there's still a lot of anxiety among those in Brazil who didn't get a reprieve.
CARRIE KAHN, BYLINE: It's hard to keep up with which Brazilian products will get taxed and which ones won't. The exemption list published by the White House yesterday contained hundreds of goods. Brazilian beef was left off the list, and that can make hamburgers pricier. Beef from here makes up a substantial part of U.S. hamburger meat.
ROBERTO PEROSA: (Speaking Portuguese).
KAHN: "It doesn't make sense," says Roberto Perosa, the head of the Brazilian association of beef exporters. He says producers will have to find new markets, including selling its cheaper and leaner cuts here in Brazil. That really wasn't an option for orange juice producers who did get an exemption. No one drinks OJ like Americans, especially not Brazilians. There's little national market.
ROSANA RISSO: (Speaking Portuguese).
PAULO RISSO: (Speaking Portuguese).
KAHN: Paulo Risso and his wife Rosana say it's just not a Brazilian habit, especially at breakfast, which they're having in their home in Andradas, in the ag-rich state of Minas Gerais.
R RISSO: (Speaking Portuguese).
P RISSO: (Speaking Portuguese).
R RISSO: (Speaking Portuguese).
P RISSO: (Speaking Portuguese).
KAHN: It's all about the coffee, they say. They're small coffee producers. Brazilian coffee is still facing a 50% threat. They're worried about the impact on their business. Agronomist Rafael Souza e Silva, who consults with Andradas' small farmers, says it's going to be hard for the more than 2,000 family exporters here to switch quickly to new markets. But he's hopeful.
RAFAEL SOUZA E SILVA: (Speaking Portuguese).
KAHN: "I don't think Americans are going to go the way of the Chinese and start drinking tea anytime soon," he says. He says U.S. consumers unhappy with higher coffee prices could help negotiations. President Trump, however, has said his high tariff on Brazil is tied to the current court case against its former far-right leader, Jair Bolsonaro. The Trump political ally is facing charges of attempting a coup after losing the 2022 elections. Trump has called the case a witch hunt and wants it dropped, something Brazil's president won't do. Luiz Inacio Lula da Silva says Trump is violating Brazil's sovereignty. Thiago de Aragao, a Brazilian business consultant, says Brazil's negotiators need to focus only on trade, not politics.
THIAGO DE ARAGAO: Forget the issue about Bolsonaro. Don't even mention about it. Ignore it completely.
KAHN: He says bringing it up was a classic Trump tactic to distract. If Lula could moderate his rhetoric, Aragao says he could get a good deal. He's already gotten a popularity boost by defending Brazil's national pride and just needs to tone it down like other leaders have.
ARAGAO: Lula has a harder time because Lula is more similar to Trump in the sense that he is also a showman. But nevertheless, if a negotiation works between Lula and Trump, both can claim some kind of domestic victory.
KAHN: After all, Brazil isn't as dependent on U.S. trade as are other countries, he says.
(SOUNDBITE OF COFFEE BREWING)
KAHN: Small farmer Paulo Risso and his wife brew another cup of coffee at their home in Andradas. Risso says he doesn't have much confidence in Lula but does trust Brazilians' ability to endure a crisis.
P RISSO: (Speaking Portuguese).
KAHN: "Something Americans aren't very good at," he says. Carrie Kahn, NPR News, Andradas, Brazil.
(SOUNDBITE OF ANDRE YOUNG, ET AL. SONG, "THE SUMMERTIME") Transcript provided by NPR, Copyright NPR.
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