U.S. tariffs, high interest rates dampen Brazil’s growth
Summary
Brazil's industrial sector grew by only 0.6 percent in 2025 due to U.S. tariffs and high interest rates, with exports to the U.S. declining by 8.6 percent in the latter half of the year.
Key Points
- Brazil's industrial output expanded by a meager 0.6 percent in 2025.
- U.S. tariffs and a high interest rate of 15 percent pressured Brazil's industrial sector.
- Exports to the United States dropped by 8.6 percent in the second half of 2025.
- FIESP proposed tax exemptions, housing program expansion, and credit acceleration to counter challenges.
