Brazil-US Tariff Talks Delayed; US Tariffs Could Raise Embraer Plane Costs
Key Takeaways
- Brazil-US tariff suspension talks, following Lula-Trump call, were delayed to October 27.
- US tariffs could raise Embraer plane costs by $2 million each, president warns.
- Bill proposes 15% tax on agribusiness securities to correct tax distortion.
- Proposal: Minimum 17.5% tax rate for all Brazil financial institutions to equalize burden.
- Brazil returns R$2.3 billion to INSS retirees, victims of undue deductions.
Top Stories
Brazil-US tariff suspension talks delayed to October 27.
Negotiations between Brazil and the US regarding tariff suspension, initially scheduled for October 26, 2025, were postponed to October 27, 2025, at 8 AM due to scheduling conflicts. The decision followed a call between the teams of Presidents Trump and Lula.
US tariffs could raise Embraer plane costs by $2 million each.
On October 26, 2025, Embraer's president warned that US tariffs on Brazilian products, signed by Donald Trump on July 30, 2025, could increase the cost of each aircraft by $2 million. The tariffs raise rates to 50% with 700 exceptions.
Brazil: Bill proposes 15% tax on agribusiness securities.
On October 26, 2025, Deputy Ivan Valente proposed a bill to tax agribusiness-linked securities at 15%. The proposal aims to correct a tax distortion benefiting large investors, following the rejection of a government measure proposing a 5% rate.
Proposal: Minimum 17.5% tax rate for all Brazil financial institutions.
On October 26, 2025, Roberto Campos Neto proposed creating a minimum effective tax rate of 17.5% for all financial institutions in Brazil. The measure aims to equalize the tax burden between fintechs and traditional banks.
Brazil returns R$2.3 billion to INSS retirees, victims of undue deductions.
On October 26, 2025, the federal government had already returned R$2.3 billion, adjusted for inflation, to INSS retirees and pensioners who were victims of undue deductions by associations and unions. This covers 3,370,000 payments up to October 27.
Climate Adaptation
Brazil reveals plan to adapt healthcare to climate change.
On October 26, 2025, Brazil revealed a plan to adapt its healthcare system to climate change, to be presented at COP30 in Belém. The plan includes measures like reorganizing routines in extreme heat and integrating climate and health surveillance, addressing risks of 250,000 annual deaths by 2050.
Brazil urged to prioritize electric public transport for climate goals.
On October 26, 2025, experts advocated for Brazil to prioritize public transportation, particularly the electrification of bus fleets, to meet its climate goals and reduce emissions. They noted that transportation accounts for over half of Brazil's energy sector emissions.
COP30 drainage works combat historic flooding in Belém.
On October 26, 2025, it was reported that COP30 macrodrainage works in Belém are combating historic flooding, with projects of R$123 million in the Benguí and Marambaia canals and R$173 million in the Igarapé São Joaquim. Residents report improvement, but experts warn of environmental impacts.
Economic Growth Pulse
Belém inaugurates direct flight to Bogotá ahead of COP30.
On October 27, 2025, Belém inaugurated a direct flight to Bogotá, Colombia, operated by Avianca. This new route aims to facilitate tourism and strengthen commercial relations, boosting growth at Belém International Airport as it prepares to host COP30.
Investment Flows
Experts: Index investing is cheap, simple portfolio diversification.
On October 26, 2025, financial experts highlighted that investing through indices is a cheap and simple way to diversify portfolios, especially for beginner investors. This strategy can be implemented via passive funds and ETFs.
Job Market Update
Brazil: 25,881 public sector jobs open, salaries up to R$44,000.
On October 26, 2025, various public agencies in Brazil announced a total of 25,881 job openings across the country. Remuneration reaches up to R$44,000, with application deadlines extending to December 2025 and April 2026 for some temporary positions.
Personal Finance
Guide: How to escape Brazil's high-interest revolving credit card debt.
On October 26, 2025, a guide was published on how to exit revolving credit card debt, the most expensive type of credit in Brazil, with average interest rates of 15.14% in the first month. Experts recommend organizing finances and switching to cheaper credit options.
Policy Briefing
Nobel laureate proposes $25/ton carbon payment to Brazil for Amazon.
On October 26, 2025, Nobel laureate Lars Peter Hansen proposed that the world pay Brazil $25 per ton of carbon to restore the Amazon, based on a study showing economic viability for reforestation. The proposal, to be debated at COP30, addresses global benefits and the need for international transfers to mitigate warming.
Brazil's STF may negotiate end to sanctions after Lula-Trump meeting.
On October 26, 2025, STF ministers considered negotiating an end to sanctions against court members following a meeting between Presidents Lula and Trump in Malaysia. This meeting aims to de-escalate the crisis with the US and potentially avoid a trial questioning the Magnitsky Act.
Brazil: PPA and federal budget alignment gaps identified.
On October 26, 2025, Virgínia de Ângelis stated that the PPA 2024-2027 and the federal budget are not fully aligned, with limited tracking of budgetary actions to plan results. The government is working to integrate the instruments, considering fiscal constraints.
Brazil: Bolsa Família and INSS payments begin late October.
Starting October 27, 2025, final Bolsa Família payments for the month begin, extending to October 31, and INSS payments for beneficiaries earning up to one minimum wage continue until November 7. The article details payment schedules for Bolsa Família, INSS, and FGTS anniversary withdrawals.
Brazil: Bolsa Família serves 49.40 million, INSS payments ongoing.
On October 27, 2025, payments began for Bolsa Família (October schedule) and INSS (for those earning up to one minimum wage). Bolsa Família serves 49.40 million people with an average benefit of R$ 683.42 per family.
Lula rebukes complaining Brazilian business leaders in Malaysia.
On October 26, 2025, President Lula criticized Brazilian business leaders who complain about interest rates and taxation in Brazil during his visit to Malaysia. Lula stated that entrepreneurs seeking opportunities abroad will be more successful.
Trump: Bolsonaro penalties may be discussed with Lula.
On October 26, 2025, during the Asean summit in Kuala Lumpur, President Trump indicated that penalties against Jair Bolsonaro could be a topic in his meeting with President Lula. Trump expressed sympathy for Bolsonaro and suggested a possible tariff reduction soon.
Brazil's Gás do Povo program may need R$1.3 billion investment.
The Gás do Povo program, announced in 2025 to replace Auxílio Gás, may require up to R$1.3 billion in investments from GLP distributors to meet increased demand. The program aims to subsidize cooking gas purchases for over 15 million families.
Tech Trends
Study: 58% of Brazilians use AI to compare online prices.
On October 26, 2025, a Bain & Company survey revealed that 58% of Brazilian consumers use artificial intelligence to compare prices in online purchases. Additionally, 52% use AI to search for products by photos.
Trade Winds
Trump admits tariff error on Brazil, promises negotiations.
On October 26, 2025, President Trump admitted to misapplying surcharges on Brazilian products and promised to negotiate tariffs during a meeting in Kuala Lumpur. Foreign Minister Mauro Vieira confirmed immediate negotiations to suspend tariffs, acknowledging Brazil's lack of trade surplus with the US.
Lula's US-Venezuela mediation plan criticized; focus on tariffs urged.
On October 26, 2025, Sóstenes Cavalcante criticized President Lula's intention to mediate the US-Venezuela conflict, arguing he should focus on resolving trade tariffs. Mauro Vieira informed that Lula offered to mediate the military crisis.
Lula champions cooperation, criticizes tariffs at Asean summit.
On October 26, 2025, President Lula defended cooperation and multilateralism over rivalry and protectionism at the Asean Business Summit in Kuala Lumpur. He criticized tariffs imposed by wealthy countries and warned against a new predatory race for natural resources.
Brazil-US tariff review meeting set for next week in Washington.
Following a meeting with Donald Trump, President Lula declared that the first meeting to discuss the review of tariffs imposed on Brazil will take place in Washington next week. Finance Minister Fernando Haddad will participate.