BRASILIA — United States-imposed tariffs on Brazilian products could cause a decline in the country’s exports for the first time in 21 months, while also hurting investment and employment, the National Confederation of Industry (CNI) warned Wednesday.
In its latest survey, the CNI said export expectations for Brazil’s industrial sector in the next six months dropped 5.1 points to 46.6 points in August. An indicator below 50 points signals an expected contraction in exports.
“The worsening of export expectations is closely related to uncertainties in the external environment, mainly due to the new U.S. trade policy,” said Isabella Bianchi, CNI’s policy and industry analyst.
A 50 percent tariff imposed by the US government on several Brazilian products took effect Aug. 6.
Impact on employment
The measure is already affecting industrial employment, which fell in July despite growth in production,
according to the CNI.
The employment expectations index slipped to 49.3 points in August, indicating that employers do not foresee job growth in the next six months.
Business owners are also less inclined to invest. “The investment intention index fell to 54.6 points, the lowest level since October 2023. However, it remains 2.1 points above the historical average of 52.5 points,” the report said. / XINHUA
