Electronics industry is apprehensive about US tariff hikes, says Abinee

The move to impose a 50% tariff on all Brazilian products destined for the United States market, starting August 1, communicated on Wednesday night (9), through a letter from the American government to Brazilian authorities, was received with concern by Abinee (Brazilian Association of the Electrical and Electronic Industry).

In a note, the entity reports that the United States was the main destination for exports of products from the sector, showing growth of 23,1% in the first six months of this year compared to the same period in 2024, increasing its share from 26% to 29% in this period.

The measure would mainly affect foreign sales of large electrical equipment, the main exported items, given the considerable investments in that country to create an electric vehicle charging infrastructure throughout the country.

GTD
According to the association, exports of engines and generators, components for industrial equipment, data processing machines, measuring instruments, among others, could also be affected.

From January to May 2025, for example, according to the most recent Abinee bulletin, there was a significant 28,6% increase in external sales of GTD (generation, transmission and distribution) items.

The highlight was the 43% increase in transformer exports, totaling US$342 million, making it the sector’s second most-exported product. Most of these sales were to the United States.

Diplomacy
Brazil will have to go to the negotiating table to reverse this tariff level, which, according to Abinee, will make foreign sales for companies in the sector unviable.

“It is important that dialogue between the two countries be preserved, maintaining a diplomatic tradition of around 200 years, based on commercial and cultural exchange, with beneficial results for the economic and social development of both nations,” the entity’s note says.