Administration must tackle geopolitics, economy

São Paulo – Journalist Lourival Sant'anna delivered a lecture titled "Between geopolitics and the economy: the challenges in post-election Brazil" on Thursday (17) morning at the Arab-Brazilian Chamber of Commerce, in São Paulo. The lecture focused on the various challenges that Brazil will face in the upcoming political transition, including tariff hikes, geopolitical tensions, and domestic uncertainty.

Sant'anna drew comparisons between current events and pre-World War I theories and events to illustrate the complexity of geopolitical tensions and their impact on Brazil. He also discussed the recent tariff hikes on Brazilian-made goods implemented by the United States under President Donald Trump, which have been put in place since July 2025.

Despite Brazil's high protectionism, with an 11% tariff on imported goods, the United States maintains a lower average tariff of 2.5%, while Europe averages 4%. The lecture also touched on the ongoing geopolitical challenges, such as the closure of the Strait of Hormuz, which could disrupt global trade if not addressed. Sant'anna highlighted Brazil's significant rare earth mineral deposits, second only to China, and the potential economic opportunities that could arise from these resources.

However, Brazil faces domestic challenges as the country prepares for a presidential election marked by deep political polarization and a Supreme Court crisis. The incumbent administration and the opposition face similar economic challenges, such as mounting gross debt and the need to achieve a primary surplus.