Election in the United States could reignite pressure on tariffs and expose Brazilian sectors
If the Democrats win the majority in Congress, the tariff dispute could gain a new chapter, with machinery, furniture and shoes among the most exposed products.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM TIMES BRASIL · 2 MIN
American voters go to the polls on Tuesday (3) for the mid-term legislative elections, and the result could change the environment in which Brazil negotiates with the United States. According to Times Brasil, a Congress with a Democratic majority would put more pressure on the tariffs adopted by the Trump administration.
Numbers help to size the theme. According to the MDIC, cited by Times Brasil, the surcharges applied in July affect 23.1% of Brazilian exports to the United States, based on 2024 trade. Among the affected products are machinery, furniture and footwear.
The dispute is not limited to trade. Also according to Times Brasil, Democrats could monitor the use of resources in strategic projects, such as rare earths in Brazil. This scrutiny is of direct interest to companies that receive American investment, precisely the group that also appears among those potentially affected.
According to Times Brasil, the effect falls on companies that sell to the United States or depend on capital from there. Among exporters, the central question is whether there will be room to reduce tariffs in the American market, something that has not yet been defined.
For those who defend open trade and fiscal responsibility, the central point is predictability. A more active Congress on tariffs and the use of public resources could bring more debate, but also more uncertainty for those who plan to produce and export. The election has not yet taken place, and the report does not provide projections on the scope of possible changes.
What changes for the investor
An election does not change tariffs by itself, and this coverage does not provide price projections or purchase or sale recommendations. The channel to watch is trade with the United States: companies that export machinery, furniture and footwear, or that depend on American investment, may have this exposure discussed in the coming months. For those who follow the stock market, interest rates and the dollar, it is worth checking how much of each company's revenue comes from the American market before drawing conclusions.
Automatically translated from Portuguese.
