Doug Palmer, Brad Haynes – Chicago Tribune/Reuters, 09/20/2012
U.S. TradeRepresentative Ron Kirk urged Brazil to reconsider plans for tariff increases, prompting a stinging rebuke of American monetary policy that has “distorted” global exchange rates.
The spat drew attention to growing trade barriers in the world’s No. 6 economy as it struggles to emerge from a year of disappointing growth and highlighted Brazil’s sensitivity to the latest aggressive stimulus by the U.S. Federal Reserve.
In a letter to Brazil’s foreign minister, Kirk expressed “in strong and clear terms” the U.S. concerns about plans to raise import tariffs on 100 foreign products, warning that they could spark retaliation from trade partners.