In recent months, the relationship between the US and Brazil has reached a critical level. The Trump administration announced the imposition of tariffs of up to 50% on Brazilian imports from August 2025, motivated by political differences and accusations of judicial ungovernability in Brazil.
Impacts and reactions:
- Most affected sectors: agribusiness (such as meat and coffee), vehicles and industry, although some categories are exempt
- Financial market: fall in Brazilian shares listed in the US, while the real strengthens due to the interest differential
- Brazilian response: the government released a package of R$ 30 billion (USD 5.5 billion) to support exporters. The Commercial Reciprocity Law was also sanctioned, enabling legal retaliation against the unilateral American measure
- Economic scenario: projections indicate a negative impact on GDP of between 0.6% and 1.0%, if tariffs remain in place for an extended period of time.
What this means for Brazilian investors:
- Legal risk: need to review export contracts and hedging instruments, especially in dollars.
- Geographic exposure: investors with assets concentrated in export sectors must reassess risks and diversify markets.
- Regulatory environment: monitor possible changes arising from the Reciprocity Law and disputes at the WTO.
How LTC Group can support you:
- Strategic assessment of tariff risks and legal mitigation for export contracts.
- Asset and corporate restructuring, with a focus on tax resilience.
- Monitoria e compliance regulatório, incluindo análise de medidas retaliatórias e oportunidades em setores isentos ou alternativos.
- Institutional and diplomatic coordination, facilitating dialogue with government bodies and the private sector.
