INSUBCONTINENT EXCLUSIVE:
Brazils economy may take a hit of up to 0.4 percentage points in the short-term after the U.S
imposed high new tariffs on Brazilian goods.This projection originates from the July 2025 report by the Organization of the Petroleum
Exporting Countries (OPEC)
Although Brazils GDP is still projected to grow by 2.3% in 2025 and 2.5% in 2026, the brand-new trade barriers put that growth at
risk.Starting in August, the U.S
will use 50% tariffs on a large range of Brazilian exports, consisting of oil, steel, coffee, beef, orange juice, and aircraft.These
products represent a large part of Brazils $41 billion in annual exports to the U.S., which is Brazils second-largest trading partner.The
economic cost could be considerable
Analysts approximate that Brazil could lose between $12 billion and $17 billion each year in export revenuesa drop equal to as much as 5% of
its overall exports.Aircraft makers, beef manufacturers, and juice exporters could see major order cuts
For Brazil, which depends heavily on foreign sales of natural resources and food, this represents a serious pressure point.Tariffs from U.S
Could Cut Brazils 2025 GDP by 0.4 Points, OPEC Says
(Photo Internet reproduction)OPECs report recommends that the 2nd half of 2025 may still see more powerful development depending on how
But that result mainly depends on whether Brazil can discover alternative export markets or reach a handle the U.S
to reduce the tariffs.The situation likewise aggravates domestic problems
Inflation in Brazil has remained high, at 5.3% in May, with food rates rising more than 7% in a year.High Rates and Tariffs Pressure Brazils
EconomyThe Central Bank has kept the essential interest rate at 14.75% to cool cost boosts, making credit costly and slowing business
Officials are prompting trade negotiations and wanting to redirect exports to brand-new regions like Asia and Europe.That might work for
agricultural items and minerals, but replacing the volume of high-value commercial exports lost in the U.S
will take more time and effort.Without a quick resolution, Brazil dangers slower growth, task losses in essential sectors, and weaker
Federal government officials and major exporters are now under pressure to avoid a longer trade disruption.The tariffs highlight the threats
of economic reliance on a few large trade partners
Brazil now faces an important testhow quickly and successfully it can adjust to safeguard its economy.
