The U.S. tariff shift has raised alarms in Brazil’s automotive sector. Although the country was not directly impacted by the new tariffs from the United States, the indirect effects are expected to transform the investment and competition landscape across Latin America.
During a press conference, Marcio de Lima Leite, president of the National Association of Automotive Vehicle Manufacturers (Anfavea), warned that Brazil will have to overcome several economic and strategic challenges if it wants to maintain its regional leadership.
Domino effect from Mexico
Mexico, one of the main vehicle exporters to the U.S., may redirect part of its production to other countries in the region due to U.S. tariffs.
This poses a direct competitive threat to Brazilian automakers, which could see decreased investments and profit margins.
The vehicle oversupply in Latin America, driven by the new tariffs, will force Brazil to rethink its commercial and industrial strategy.
The country could lose appeal as an investment destination if it doesn’t adopt more agile policies, reduce bureaucracy, and improve its logistics infrastructure.
Anfavea also warned that stricter U.S. trade policies could slow the transition to electric vehicles by eliminating incentives and increasing costs.
Still, this opens a window of opportunity for countries like Brazil to position themselves as regional leaders in e-mobility.
A call to action amid U.S. tariffs
Brazil is at a turning point due to U.S. tariffs. The government and private sector must act together to redefine their industrial strategy and seize the opportunities created by shifting U.S. trade policy.
Initiatives by the National Bank for Economic and Social Development (BNDES), along with tax incentives and innovation investment, will be key to strengthening sustainable mobility in the country.
These and other topics will be part of the discussion at Latam Mobility Brazil 2025, the key event on sustainable mobility in the region. The meeting will bring together industry leaders in São Paulo on May 7–8, consolidating its role as the leading platform for the future of mobility in Latin America.
For more information on how to participate and explore positioning opportunities, write to us at: info@investinlatam.org.
Contact us on WhatsApp or take advantage of the early-bird ticket sale for São Paulo, here.
