Government Estimates That The US Tariff Could Reduce Brazilian GDP By 0.1 Percentage Point Until December 2026
The federal government estimates that the US tariff will lead to the elimination of up to 65,000 jobs in Brazil between August 2025 and December 2026.
The measure is also expected to reduce the Gross Domestic Product (GDP) of Brazil by 0.1 percentage point during the analyzed period.
The assessment is included in the MacroFiscal bulletin released on Thursday by the Economic Policy Secretariat (SPE) of the Ministry of Finance.
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Reduction of working hours to 40 hours could cost R$ 77 billion to the GDP, raise food prices, and put up to 2.7 million jobs at risk, data indicates.
The agency calculated the impacts following the imposition by US President Donald Trump of an additional 40% tariff on various Brazilian products starting August 6, with a ceiling of 50%.
Emergency Plan Should Contain Part Of The Economic Losses
According to the SPE, the economic losses would be greater without the provisional measure that created a support plan for exporters affected by the US surcharge.
The package released R$ 30 billion in subsidized credit for Brazilian companies that had their external sales affected.
With the support plan, the government estimates that the losses will be limited to 65,000 jobs and 0.1 percentage point of GDP. Without the emergency support, the SPE projects the closure of 138,000 jobs and a decline of 0.2 percentage point in national economic activity.
Estimates Differ From Projections Of The Ministry Of Labor
The Secretary of Economic Policy, Guilherme Mello, stated that the US trade tariffs are at a “fairly high level” compared to recent data, even after agreements with other countries. Meanwhile, the Minister of Labor and Employment, Luiz Marinho, referenced a study by BNDES on August 27, which indicated that the US tariff could affect up to 330,000 jobs in Brazil “if everything goes wrong.”

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