Weg is the Brazilian company most exposed to Trump's tariff hike. The multinational manufacturer of industrial motors and equipment, headquartered in Jaraguá do Sul (SC), is racing against time to reduce the impact of the new U.S. taxation.

Weg is the Brazilian company most exposed to Trump’s tariff hike. The multinational manufacturer of industrial motors and equipment, headquartered in Jaraguá do Sul (SC), is racing against time to reduce the impact of the new U.S. taxation.

Written by Corporativo

Published on 08/06/2026 at 20:42

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At the moment, the company from Santa Catarina – the only one in its sector with shares traded on the Brazilian stock exchange (B3) – is seeking to reconfigure its export agenda, directing part of its sales from the USA (25% of the total) to neighboring Mexico, which does not impose tariff restrictions.

With 25% of its exports destined for the USA, the multinational manufacturer of industrial motors and equipment Weg (WEGE3) – headquartered in Jaraguá do Sul (SC) – is the Brazilian company most exposed by the Trump administration’s decision to tax, by an additional 25%, sales from the segment to that country. With this measure, the situation of the industry from Santa Catarina, already delicate with the application of a 10% rate (section 122) a year ago, became even more uncertain. The company is the only one in the sector with shares traded on the Bovespa (B3).

The order of the day is to accelerate production in US factories

While assessing the risk of an even more forceful ‘tariff shock’, Weg seeks support in the opinion, even if preliminary, of Citi, which defines the impact of the measure as moderately negative in the short term. Facing the tariff challenge presented, the Brazilian company decided to accelerate the production of its factories in the USA, an adjustment that, however, requires time, precisely the most scarce item at this moment.

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Mexico is a fundamental alternative

In a study signed by analysts Lucas Marquiori, Fernanda Recchia, and Samuel Alkmim, BTG Pactual classified the impact of the ‘Trumpian’ tariff as ‘slightly negative’, emphasizing that low voltage electric motors (up to 200 HP) make up the majority of exports to the US market. Meanwhile, motors with power greater than 200 HP, as well as some types of transformers, are covered by section 232, as they are primarily directed to Mexico.

In fact, since the first edition of the tariff announced by the Republican, Weg has been seeking to relocate a significant part of its production capacity from the USA to Mexico, a measure that will serve to mitigate future protectionist measures from Washington.

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Catarinense company should prioritize domestic market

Another alternative gaining strength is the prioritization of the domestic market, with increased investment in manufacturing within the country itself. In this regard, the director of Solar, BESS, and Building at Weg, Harry Neto, stated that the company should participate in the future battery auction, together with strategic partners, as a supplier of equipment and EPC (Engineering, Procurement, and Construction) services.

Instead of directly competing for the auction assets, the company intends to work together with investors and companies in the electric sector, who are responsible for the operation of the projects. “WEG does not keep the asset because we do not compete with our clients. We go along with the partner as a supplier of equipment and services, performing the full EPC of the battery,” Neto added.

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Weg is the Brazilian company most exposed to Trump’s tariff hike. The multinational manufacturer of industrial motors and equipment, headquartered in Jaraguá do Sul (SC), is racing against time to reduce the impact of the new U.S. taxation.

The order of the day is to accelerate production in US factories

Mexico is a fundamental alternative

Catarinense company should prioritize domestic market

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Weg is the Brazilian company most exposed to Trump’s tariff hike. The multinational manufacturer of industrial motors and equipment, headquartered in Jaraguá do Sul (SC), is racing against time to reduce the impact of the new U.S. taxation.

The order of the day is to accelerate production in US factories

Mexico is a fundamental alternative

Catarinense company should prioritize domestic market

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Dissatisfied with seeing people sleeping on the street, a man named Ryan Donais started building small mobile homes so that homeless people can escape the cold, each equipped with a bed, running water, electricity, and heating.

Consumers eat six times more chicken than in the 1960s, global meat supply quadruples in 60 years, and FAO report reveals the invisible cost on the plate: livestock could drive 80% of the increase in agricultural emissions over the next decade.

An Indonesian fisherman pulls a mysterious object from the sea and discovers that it is a Chinese underwater monitoring system, part of the so-called Underwater Great Wall that Beijing uses to track submarines and unmanned vehicles in strategic straits of the region.

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