ApexBrasil plans R$130 million export diversification drive after U.S. tariff hike

Brazil’s trade promotion agency ApexBrasil will launch a R$130 million plan in August to help exporters find new markets and limit the impact of additional U.S. tariffs on Brazilian goods.

Linked to the Ministry of Development, Industry, Trade and Services, ApexBrasil said the initiative will be carried out in partnership with 57 industries representing 2,400 exporting companies.

“We already work to expand into other markets. What we will focus on now is diversification—taking a fresh look at new opportunities in a changing international trade environment,” ApexBrasil President Laudemir Müller told a news conference on Friday, July 17.

Müller said priority markets include the European Union, particularly following its recent agreement with Mercosur, as well as fast-growing members of the Association of Southeast Asian Nations, or ASEAN, including Indonesia, Malaysia, Thailand and Vietnam.

Central Asian countries such as Kazakhstan and Uzbekistan are also among the potential destinations being assessed for Brazilian companies affected by the U.S. measures.

“These are fast-growing and developing economies that have shown strong interest in investment partnerships with Brazil,” Müller said. “They are expanding by 7% or 8% of gross domestic product, have young populations and demand products that Brazil can supply.”

Trump administration raises tariffs on Brazilian goods

On Wednesday, July 15, the Office of the U.S. Trade Representative, or USTR, confirmed an additional 25% tariff on a range of Brazilian products, citing what it described as unfair trade practices by Brazil.

The Brazilian government has rejected Washington’s justification, arguing that the measure is politically motivated and that the United States had demanded full market access without offering equivalent concessions.

The new tariffs are scheduled to take effect on July 22.

The products covered by the latest measures accounted for $7.2 billion of Brazil’s exports to the United States in 2025. Brazil’s total exports to the U.S. market reached $38 billion last year, according to ApexBrasil.

During negotiations, the number of exempt products increased from 615 to 699. Based on 2025 trade figures, the value of goods excluded from the new duties rose from $20.6 billion to $22.8 billion.

Müller said Brazil’s exports to the United States fell by approximately $2.6 billion in the first half of 2026 as a result of tariffs introduced earlier.

“But exports increased by $3.1 billion to Europe, $2.5 billion to India and $10.5 billion to China, to mention just some of the most important destinations,” he said.

Mercosur’s negotiations with India, Japan and Canada also offer opportunities to diversify Brazil’s foreign trade and reduce its dependence on the United States, according to ApexBrasil.

Diversification efforts already underway

Müller said ApexBrasil has been working to diversify export destinations since the first U.S. tariffs were imposed in 2025.

“Of the 2,400 companies supported by ApexBrasil that export to the United States, 72% diversified their markets between June 2025 and May 2026,” he said. “During that period, they added at least one new export destination.”

Some markets will be easier to enter than others, Müller said, while certain industries will require medium- or long-term efforts to develop demand.

“Other sectors will take longer, and the process may be more complex,” he said. “Sometimes we will need to create a market in another country. We may have to go to China, for example, and explain that Brazil produces a particular type of stone with certain characteristics that could also serve the Chinese market.”

Brazil remains an attractive investment destination

Despite the challenges, Müller said Brazil has strengthened its international reputation as a reliable partner and stable supplier.

“Brazil received $77 billion in foreign investment last year, making it the world’s fifth-largest recipient,” he said.

“Foreign investment in developing countries increased by 2%, while Brazil recorded growth of 22%. The country is also already the leading destination for Chinese investment.”

Source: Agência Brasil

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