Tariff influences Brazilian logistics, but it can be good, says expert

Companies around the world are watching the scenario of trade tension that seems far from over, with the United States imposing tariffs of up to 145% on Chinese products, and China retaliating with also high rates of 125% on American products.In total, 180 countries are being impacted by the tariffs commercials announced in early April by US President Donald Trump.Brazil has not escaped unharmed and has been affected by tariffs of 10% in some sectors and 25% on domestic steel, one of the main materials that the country exports to Americans.

Even though Brazil has had one of the lowest rates applied, the reaction in the production chain is real and impacts Brazilian logistics.In the automotive industry, for example, automakers such as Stellantis, which owns the brands Chrysler, Jeep and Dodge, the company said paralyzed temporarily (until the end of April) the production line of its factories in Mexico and Canada.

According to emergency logistics specialist Marcelo Zeferino, Prestex CCO, the truth is that the industry as a whole has connected the warning signal at both ends: “Se on one side, the largest partner for selling industrialized products in Brazil is the USA and with a rate of 10% should lose competitiveness, on the other side, is the largest competitor of the Brazilian industry that is China, and that can divert its production to Brazil, further intensifying competition in the domestic market”, he explains.

According to the expert, in the middle of this “tabuleiro” are the logistics operators that transport the cargo, components, parts, machinery, grains, medicines, clothing and consumer goods.“O real impact of this scenario will only be measured when prices stabilize. At this time, uncertainty weakens the industry and damages the market, which does not know if it needs to be more aggressive and make stock or wait, counting on a drop in tariffs there in front”, highlights the executive of the Prestex.

But for Marcelo Zeferino, you need to see the glass half full and turn the difficulty into opportunity. He recalls that in the automotive sector China has no factory in Brazil and the logistics of parts, components, machinery, the so-called logistics of spare parts (spare parts management) will become very relevant.“One thing is for sure: the stock will be even more just in time, demanding a more personalized and assertive logistics, with high performance, so that the chain has a flexibility in service. Some American companies are even anticipating purchases of manufactured products from Brazil. The logistics operators that are prepared to meet the emergency demands, will come out ahead”, emphasizes the CCO.

Specialized in B2B emergency logistics, for 22 years in the market, the Prestex it serves all segments and closely follows the movement of the pieces in this strategic game of commercial chess of the industries.“We already have aircraft of over-warning and predefined strategies to quickly meet the demands of companies. The next weeks will be decisive”, concludes.

The focus on air modal by Prestex is due to agility, safety, global coverage, possibility of alternative routes and strict safety procedures, which minimize risks of loss and damage. The executive recalls that the participation of air modal in national cargo transportation still represents about 3%, while abroad already reaches 6%.

The fact is that the logistics sector and agility in delivery play a key role in business and economic development of the country, reflecting in Gross Domestic Product (GDP) and job creation. According to the Brazilian Association of Logistics Operators (ABOL) the sector represents 1,8% of national GDP and accounts for 2.3% of the total number of people employed in the country.

The final analysis of the Prestex executive is that the tariff presents both challenges and substantial opportunities for Brazilian logistics.“A strategic vision, combined with technology, flexibility and ability to adapt quickly, can elevate Brazil to a key role in global logistics, capturing the benefits of a changing economic environment”, concludes Marcelo Zeferino.