Tarcísio: tariff hike could cause an impact of up to 2.7% on São Paulo's GDP and the loss of 120,000 jobs

São Paulo Governor Tarcísio de Freitas (Republicans) said this Saturday that the state's Gross Domestic Product (GDP) could be negatively affected by between 0.3% and 2.7% due to the 50% tariff promised by the United States on Brazilian products. The statement was made at Expert XP 2025 in São Paulo. "We have conducted many simulations, and the impact could be very severe," he stated.

In addition to the impact on GDP, Tarcísio mentioned the possibility of 44,000 to 120,000 fewer jobs in the state, and a loss of R$3 billion to R$7 billion in wages.

Tarcísio also stated that he is concerned about both small and large businesses operating in the state. He cited the case of Caterpillar, which has a factory in Piracicaba.

He also mentioned Embraer. "It sends [to the US] executive jets manufactured in Gavião Peixoto, and commercial aviation aircraft manufactured in São José dos Campos, and we're talking about imposing a significant burden [on the company]," he said.

Tarcísio was at the XP event on a panel alongside the governors of Goiás Ronaldo Caiado (União Brasil) and Paraná, Ratinho Jr. (PSD).