Brazil and the US: trade tensions and the rise of startups.

Brazil and the US: trade tensions and the rise of startups.

Last week, the global economic landscape was marked by trade tensions between Brazil and the United States, as well as significant advances in the Brazilian technology and startup sector. The meeting between Foreign Minister Mauro Vieira and US Secretary of State Marco Rubio in Washington was the high point of the diplomatic negotiations, focusing on the tariffs imposed by Donald Trump on Brazil.

Trade tensions between Brazil and the US

The Brazilian government is seeking to reverse the 40% tariffs on products exported to the US, which directly affect sectors such as agribusiness, steel, and manufacturing. The meeting between Vieira and Rubio, the third since the US Secretary took office, reinforces the diplomatic effort to mitigate the impact of these measures. The Sovereign Brazil Plan, expanded by the federal government, now requires only an 1% impact on exports for companies to access financing lines, compared to 5% previously.

According to data from the Ministry of Finance, approximately 1,200 companies have already requested financial support since the program began. The goal is to mitigate losses and maintain the international competitiveness of the affected sectors.

Brazilian stock market hits new record.

While trade tensions dominate the headlines, the Brazilian financial market is experiencing a moment of euphoria. The Ibovespa, the B3 index, closed the last session above 155,000 points, with a gain of 0.77% — the 14th consecutive day of appreciation. The stock exchange has accumulated a gain of 29.08% in 2025, the largest since 2019.

Oil, mining, and banking stocks are leading the movement, but technology companies and startups are the highlight. A survey by Elos Ayta shows that 14 stocks in the Ibovespa and Small Caps index have already doubled in value by 2025. Cogna (COGN3) leads the ranking, with an appreciation of 240,16%, followed by Movida (MOVI3) and Moura Dubeux (MDNE3), both with increases of over 190%.

The startup sector is booming.

The Brazilian startup sector is also experiencing significant growth. According to data from the Brazilian Association of Startups (ABStartups), the national ecosystem attracted more than R$12 billion in investments by 2025, with a focus on fintech, digital health, and technological education companies.

Companies like Cogna, Ser Educacional, and Ânima, all in the education sector, have accumulated valuations exceeding 150% this year. This optimism is driven by the expansion of digital education and the recovery of results in the educational services sector.

Impacts and perspectives

The Central Bank's decisions on the Selic rate and official inflation in October will be crucial for the economic outlook in the coming months. If inflation comes in lower than expected, the Monetary Policy Committee (Copom) is expected to begin cutting interest rates as early as January, which could further stimulate the migration of investments to the stock market.

Meanwhile, the Brazilian government is intensifying dialogue with international partners to protect the productive sector and promote sustainable growth. The rise of startups and the booming stock market indicate that Brazil is positioning itself as one of the main innovation hubs in Latin America.

Photo by Agustin Diaz Gargiulo on Unsplash