Brazil’s economy may face steeper slowdown from US tariffs, says IMF

Published 29/07/2025, 15:18
Brazil’s economy may face steeper slowdown from US tariffs, says IMF

Investing.com -- Additional U.S. tariffs on Brazil could cause a more significant economic slowdown than currently projected for the South American nation, according to a preliminary assessment by the International Monetary Fund.

Petya Koeva-Brooks, Deputy Director at the IMF Research Department, noted that some tariffs, particularly those on steel and aluminum products, are already affecting the Brazilian economy and have been factored into the Fund’s latest forecast.

"Our preliminary assessment is that that would lead to a steeper slowdown in activity than we currently are projecting," Koeva-Brooks said during a news briefing Tuesday at the launch of the updated World Economic Outlook.

The IMF currently forecasts Brazil’s economy to grow 2.3% in 2025, down from a 3.4% expansion last year.

Products that would be subject to these additional tariffs are expected to represent approximately 1.1-1.4 percentage points of GDP, according to Koeva-Brooks.

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