Trump’s Green Retreat Offers Brazil Opportunity, Minister Says

(Bloomberg) -- President Donald Trump’s move to scale back US investments in renewable energy is spurring companies to look to Brazil as an alternative for those projects, according to Finance Minister Fernando Haddad.

Industries are already reaching out to Brazil’s development bank for financing of solar and wind power plants, Haddad said in an interview with Rede TV station on Thursday evening. “When he cuts subsidies for ecologic transformation in the United Stated, he opens up a huge field of investment in Brazil,” the minister said about Trump.

Latin America’s largest economy will host the next United Nations climate conference, COP30, in November. President Luiz Inacio Lula da Silva has made investing in sustainable projects an important part of his economic growth strategy. Haddad is leading the effort, which includes creating a regulated carbon market and issuing green bonds.

Haddad also said the US has nothing to gain from overtaxing Brazilian products since trade between the two countries is already balanced. “It doesn’t make any sense,” he added.

Earlier, Lula told reporters that Brazil is ready to respond if Trump places new tariffs on its products. 

The US president has repeatedly threatened to impose tariffs on goods from Mexico and Canada, and has at times listed Brazil among nations that levy steep costs on US-made items. Haddad sees it as essential for Brazil to have a good relationship with the US while also building strong partnerships with the European Union and China.

Economic Growth

Brazil’s economy can likely expand by 2.5% this year without further driving up inflation, according to the minister. Activity is slowing and food prices should stabilize as the 2025 harvest starts and the currency strengthens, he said. The government estimates that the economy grew by more than 3% in 2024.

The central bank raised the benchmark Selic rate by a full percentage point to 13.25% on Wednesday. The move was expected after being signaled in December, and the bank plans another one-point hike in March to curb inflation. “Brazil’s interest rate is already at a restrictive level,” Haddad said.

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