Donald Trump’s tariff against Brazil comes into force next Wednesday (6) amid strong discharge in investments in Brazilian companies in the United States. The stock of this type of operation reached US $ 22.1 billion at the end of 2024, a 52.3% growth compared to ten years ago, according to a survey by the National Confederation of Industry (CNI).
In the last five years alone, more than $ 3.3 billion have been announced for new operations, consolidating the US as the main investment destination greenfield (Zero Productive Implementation Projects) From Brazil abroad.
At least three companies can expand investments in the United States in the coming years to mitigate the effects of 50%tariffs:
- Suzano studies building a long fiber pulp factory for paper packaging;
- Embraer can invest in addition to the US $ 500 million already foreseen for five years, depending on sales of military freighter KC-390 Millenium to that country; and
- Taurus, the largest Brazilian gun manufacturer, considers transferring all production from Rio Grande do Sul to the United States.
The expansion of Brazilian capital in the USA
Since 2013 there have been 142 investment projects implemented, according to the Brazilian Export and Investment Promotion Agency (Apex-Brasil) and the American Chamber of Commerce for Brazil (AMCHAM). About three thousand Brazilian companies maintain various investments in the world’s largest economy, reflecting strong economic integration between the two countries.
“The Brazilian productive sector sees in integration with the United States much more than trade: it sees partnership. The advance of investments on both sides, over the years, reinforces the complementary character and mutual benefits of this relationship,” says Ricardo Alban, president of CNI.
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The Brazilian presence reaches at least 23 of the 50 American states. Florida leads with 12 production units, followed by Georgia (7), Michigan (6), Minnesota (6), Missouri (6), New York (6), Tennessee (5) and Texas (5). Miami, Florida, stands out as the Operations Center due to easier access to Latin America.
Giants like JBS, Embraer and Weg boost the numbers
Large companies have announced significant investments. Embraer, the third largest manufacturer of passenger aircraft, will expand its factory in Florida by applying US $ 99.2 million. The company also provides for the implementation of a Texas Maintenance Center, a project that requires a contribution of US $ 70 million and will generate 250 direct jobs.
JBS leads investment ads for the past five years, with $ 607 million. For 2025, it intends to expand its operation in Texas and inaugurate a Distribution Center in Colorado, a combined investment of US $ 200 million. Previously, he had announced the construction of a new plant in Iowa, with the potential to generate 500 jobs.
Sustainea, joint venture between Braskem and Japanese Sojitz, will invest $ 400 million by 2028 in the construction of an Indian factory. The plant will produce chemical components used in everyday products, such as food containers and shoes. The initiative is partnered by the University of Purdue and Primient, a local company that will provide corn -based chemical components.
Many of these initiatives are part of the US government’s selectus program, which aims to attract direct investment. There are 65 registered projects that exceed US $ 1 billion in investments and have the potential to generate more than 2,500 direct jobs.
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Brazilian companies strengthen their presence in the American market through strategic mergers and acquisitions. Santa Catarina Weg acquired the assets of Heresitis Protective Coatings, a US $ 9.5 million, and bought Global Overall engines and generators of Regal Rexnord for $ 400 million by 2023.
In 2023, Suzano acquired two factories from Pactiv Evergreen, producer of food and beverage packaging, for $ 110 million. TCLOUD, controlled by Telefônica Brasil, bought IPNET and IPNet USA, companies specializing in Google digital solutions and partners, for $ 42.2 million.
Protectionist threat: 50% rate puts opportunities at risk
Despite optimism, a cloud of uncertainty hangs over these investments. There are fears that, in the face of Trump’s tariff, the American economy loses breathtaking, with lower growth and greater inflation.
Understand Trump’s tariff about Brazilian products
The taxation on Brazil in Trump’s current term began in February, with the restoration of overcrowders on steel (25%) and aluminum (high to 25%), applied to all countries, including Brazil, which previously enjoyed exemption. Brazil is the leading US supplier of semi -wadded products, ingot and other primary forms of iron or steel.
In April, the Republican detailed his reciprocity plan in tariffs (“Fair and Reciprocal Plan on Trade“), in which Brazil was in the least targeted group, with 10%rates.
Last Wednesday, however, the US President signed a decree that raised from 10% to 50% the tariff on the importation of most Brazilian products. This is the highest tax in force at the moment.
Trump’s executive order that instituted the tariff has a list of exceptions with almost 700 products. Still, it is estimated that 55% to 60% of Brazil’s exports to the US was hit by the new rate.
The impact on the Brazilian economy will depend on any retaliation. Study of the Federal University of Minas Gerais (UFMG) points out that, in the short term, 110 thousand jobs can be lost, especially in agriculture and commerce, in addition to R $ 19.2 billion in GDP. With deep retaliation on both sides, CNI estimates that 5 million jobs can be closed within 10 years and cost 6% of GDP.
Ten largest investments from Brazilian companies announced in the US (2020-24), according to CNI
- JBS: US $ 607 million
- Serena Energy: US $ 420 million
- CSN: US $ 350 million
- Bauducco Foods: US $ 200 million
- Embraer: US $ 192 million
- Tramontina: US $ 120 million
- Cross Comerce Store: US $ 120 million
- BEONTAG (CCRR Group): US $ 119 million
- Marfrig: US $ 100 million
- Petropar: US $ 100 million
