Brazil&rsquo;s powerful industrial lobby has raised the alarm over fresh US tariffs, warning that the new trade barriers could derail Brazil&rsquo;s export growth streak, weaken job creation, and dampen investor confidence.
According to the National Confederation of Industry (CNI), export expectations for the next six months fell by 5.1 points to 46.6 in August, marking the first contraction signal in nearly two years. Any reading below 50 suggests declining trade prospects.
&ldquo;The worsening of export expectations is closely related to uncertainties in the external environment, mainly due to the new US trade policy,&rdquo; said Isabella Bianchi, policy and industry analyst at CNI.
A 50% tariff on multiple Brazilian products, enforced by Washington from August 6, has already started biting. Despite production growth, industrial employment fell in July. The CNI&rsquo;s employment index dropped to 49.3 in August, reflecting subdued hiring outlooks.
Investor sentiment is also cooling. The investment intention index slipped to 54.6 points, its lowest since October 2023, though still marginally above the historical average of 52.5.
Brazilian President Luiz Inacio Lula da Silva has strongly rebutted US criticism. &ldquo;It is a lie when the US President says that Brazil is a bad trading partner. Brazil is good, it just won&rsquo;t bow down to the US government,&rdquo; Lula asserted at an event in Pernambuco.
Earlier, Donald Trump described Brazil as a &ldquo;horrible trading partner&rdquo; and criticized ongoing legal proceedings against former president Jair Bolsonaro, calling it a &ldquo;political execution.&rdquo; Lula responded sharply, insisting that &ldquo;democracy is judging Bolsonaro.&rdquo;
As tensions escalate, Brazilian industry fears a prolonged trade standoff could slow an economy that has relied heavily on export-led momentum over the past 21 months.

US Tariffs Threaten Brazil’s Export Momentum

CNI warns fresh US duties could hurt exports, jobs and investment in Brazil

US Tariffs Threaten Brazil’s Export Momentum

CNI warns fresh US duties could hurt exports, jobs and investment in Brazil

August 21, 2025 | 13:40 IST