Potential Economic Slowdown: The Impact of U.S. Tariffs on Brazil

The International Monetary Fund warns that additional U.S. tariffs on Brazil could result in a more significant slowdown in Brazil's economic activity than previously anticipated. While some tariffs are already impacting the economy, the IMF's preliminary assessment suggests further tariffs could substantially hinder growth.


Devdiscourse News Desk | Updated: 29-07-2025 19:49 IST | Created: 29-07-2025 19:49 IST
Potential Economic Slowdown: The Impact of U.S. Tariffs on Brazil
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The International Monetary Fund (IMF) has raised concerns about the potential economic repercussions of additional U.S. tariffs on Brazil. In its preliminary assessment, the IMF noted that Brazil could experience a sharper economic slowdown than initially projected due to these tariffs.

Petya Koeva-Brooks, Deputy Director at the IMF Research Department, highlighted that existing tariffs, particularly on steel and aluminum, have already been integrated into Brazil's economic forecasts. However, if further tariffs are introduced, the slowdown could be more pronounced than anticipated.

The IMF predicts a growth rate of 2.3% for Brazil in 2025, a decrease from last year's 3.4% expansion. Koeva-Brooks mentioned during a news briefing that the additional tariffs could account for 1.1 to 1.4 percentage points of GDP, affecting a substantial portion of the economy.

(With inputs from agencies.)

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