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Brazilian Industry Groups Prepare to Contest 25% Tariff Proposal in Washington
Lead: Hearings set for next week as groups push back
In Washington, D.C., Brazilian industry groups will appear at hearings next week to oppose a proposed 25% tariff on Brazilian goods by the USTR. They argue the plan would raise costs for American consumers and businesses, and could shrink jobs and investment in the United States.
Key players and main arguments
Abimaq (Association of the Brazilian Machinery and Equipment Industry) will present two key points. First, most bilateral trade in this sector is between company groups, not a simple buyer-seller relationship, so a tariff would hit the American market and core industries like infrastructure and energy. Second, imports of Brazilian machinery into the U.S. totaled about $3.2 billion in 2025, leaving a $1.2 billion surplus for the United States, making a tariff hard to justify.
The CNI (National Confederation of Industry) will also oppose the broad 25% tariff. It notes that more than a third of Brazil’s manufacturing exports could come under new duties, and it questions the tariff’s legal, economic, and strategic justification. The CNI will be represented by officials including a former WTO figure, Roberto Azevedo.
The WEG group will send its U.S. head to speak. The American unit employs about 2,300 people and covers sectors such as energy, industry, and infrastructure. WEG argues that tariffs would harm U.S. competitiveness and workers without addressing the issues the investigation aims to fix. The company recently signed a contract to supply motors to the Thacker Pass lithium project in Nevada, supported by DOE financing.
Industry updates and voices
Bauducco will discuss its new Florida plant, a $200 million project that doubles U.S. wafer production and consolidates operations. CEO Stefano Mozzi will request a temporary tariff exemption of three to five years, saying tariffs would reduce investment and raise costs for retailers and American consumers.
The Abimci (Brazilian Association of Mechanically Processed Wood) will highlight the role of Brazilian wood in the U.S. market. About half of Brazil’s wood exports go to the United States, and the sector relies on sustainably managed plantations with traceability.
Coffee and stone sectors on the agenda
Cecafé (Brazilian Coffee Exporters Council) will press to keep tariff exemptions for green coffee and to broaden Section 301 exemptions to include soluble coffee. The strategy is coordinated with the National Coffee Association (NCA), which represents American coffee interests. The aim is to show how tariffs affect consumers.
In the stone sector, Controrochas argues that Brazil supplies a key input for the American stone industry. They note a highly integrated supply chain: the Brazilian stone is processed in the U.S., and tariffs would ultimately hit American shoppers. They estimate about 85% of U.S. natural stone is imported, with roughly a quarter coming from Brazil.
Broader trade and intellectual property context
The CNA (Confederação da Agricultura e Pecuária do Brasil) says criticism of tariff preferences, ethanol access, and anti-deforestation measures lacks solid economic evidence and questions the WTO framework. It favors resolving gaps through bilateral cooperation.
The ABPI (Brazilian Intellectual Property Association) argues that Brazil’s advances against piracy and quicker patent reviews make the USTR’s assessment outdated.
Conclusion
Overall, the Brazilian industry groups frame the upcoming Washington hearings as a contest over whether a 25% tariff would advance or undermine the U.S. economy. They contend the measure would raise costs for American consumers and businesses, threaten jobs and investment, and disrupt tightly integrated supply chains linking Brazil and the United States. They highlight that much bilateral machinery trade occurs within affiliated firms, making the tariff hard to justify given the U.S. surplus on imports and the potential impact on infrastructure and energy sectors. The groups push for exemptions and carve-outs—such as preserving green coffee exemptions, seeking soluble coffee exemptions, and granting a temporary exemption for Bauducco—to protect consumers and investment. Leading bodies like Abimaq, CNI, WEG, Bauducco, Abimci, Cecafé, CNA, and ABPI will urge the USTR to temper or exclude the measure in the interest of preserving jobs, investment, and reasonable consumer prices.
Frequently asked questions
- What is the main worry about the 25% tariff on Brazilian goods? It would raise costs for American shoppers and businesses and hurt jobs and investment in the US. Much of bilateral trade is between Brazil’s sister companies, so US firms would feel the hit too. Quick substitution of Brazilian imports would be hard.
- Which groups will testify in Washington against the tariff plan? Abimaq, CNI, WEG, Bauducco, Abimci, Cecafé, CNA, ABPI, and other Brazilian industry groups will testify.
- How would a tariff affect specific sectors? Machines: Brazil–US trade was about $3.2 billion in 2025, with a US surplus of $1.2 billion. Bauducco’s new Florida plant could add up to 600 US jobs. Coffee: they want to keep green coffee exemptions and add soluble coffee. Stones: 85% of US demand comes from imports; Brazil is a main supplier.
- What exemptions are being pushed for? Keep exemptions for green coffee and seek to expand to soluble coffee. Bauducco asks for a 3–5 year exemption. Other Brazilian sectors want carve-outs as well.
- What outcome do the Brazilian groups seek from the hearings? To block the 25% tariff and protect American jobs, shoppers, and investment. They want to defend bilateral supply chains and show the tariff would raise costs and slow investment.