The political and economic dynamics of the United States play a significant role on the global stage, especially in relation to developing economies such as the United States. Brazil. The presidential elections in the United States bring not only political, but also commercial and financial changes that can directly affect Brazil. With figures like Kamala Harris and donald trump with possible divergent views, the repercussions are diverse and complex.
Brazil, being a major trading partner of the United States, closely watches political decisions that could affect its exports and imports. Furthermore, American politicians often adopt positions that influence exchange rates, inflation and foreign investment, indirectly influencing Brazil as well.
How does protectionism affect the trade balance?
North American protectionism is one of the factors that most influences the trade relationship with Brazil. Recent examples show how restrictive measures, especially during the Trump administration, have affected Brazilian sectors like that steel and the aluminum. By imposing barriers on Chinese products and threatening countries that trade in Asian currencies, American policy affects the flow of world trade.
Analysts suggest that a less protectionist foreign policy, as one might expect from Kamala Harris, could facilitate a more cooperative environment in bilateral trade. This could help Brazil increase its exports to the United States, contributing to a more favorable trade balance.
Check out this photo on Instagram
How do fiscal policies affect the dollar?
The appreciation or devaluation of the dollar has direct consequences for Brazil. During the Trump administration, the dollar recorded a significant upward trajectory against the real, with peaks that put the Brazilian economy in difficulty. American fiscal policies, focused on demographic incentives, can, on the other hand, increase consumption and domestic inflation, influencing exchange rates.
Analysts point out that policies aimed at the middle and lower classes can stimulate consumption, increasing domestic demand in the US. Consequently, the Central Bank of the United States (The Fed) may be induced to raise interest rates to control inflation, attracting more investors and strengthening the dollar.
Interest rate: what are the implications for the Brazilian economy?
An increase in the US interest rate could have significant repercussions on Brazil’s Central Bank and national monetary policy. By making North American bonds more attractive, investors can pull out of Brazil, putting pressure on the Central Bank to raise the Selic rate to compete for foreign capital.
Experts warn of fiscal risks associated with US tax cuts proposed by candidates like Trump. With lower revenues, the possibility of fiscal imbalance increases, leading to inflationary pressures that may also require interest rate adjustments.
Challenges and opportunities
In the US presidential elections, the choice of economic policies can mean challenges and opportunities for Brazil. Trump’s protectionism, however significant, is only part of the complex picture. On the other hand, a management that is more open to dialogue, such as that seen with Kamala Harris, could open new doors for commercial agreements.
Economic relations, influenced by U.S. fiscal, exchange rate, and trade policies, require Brazil to maintain a strategic diplomatic position to maximize its economic benefits and minimize the negative impacts of political changes in the Northern Hemisphere.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
