The “Tarifaço” and the Changing Export Routes of Brazilian Medical Devices
The term “tarifaço” refers to the steep tariffs imposed by the United States on certain imported products — in this case, Brazilian medical devices — which increase the cost of direct access to the U.S. market. As a result, Brazilian companies have been seeking alternative markets to channel their products.
After the tariffs took effect, Brazilian exports of medical devices to the U.S. recorded a decline of approximately 30.04% on a monthly comparison basis. In August, sales to that destination totaled around USD 21.2 million, the lowest value of the year. In contrast, exports to Europe grew significantly between July and August, by 44.51%. Highlights include Spain (+632.59%), France (+238.77%), and Switzerland (+130.72%). In Latin America, countries such as Bolivia (+56.18%) and Mexico (+28.34%) also became more relevant destinations.
Segments with higher added value felt the impact of the tarifaço more strongly when it came to the U.S. market. For example, dentistry, rehabilitation, and medical equipment registered sharp declines in exports to the U.S. Another critical point is Brazil’s dependency on imported inputs, many of them sourced from the U.S. For the medical device sector, this creates risks, as costs and supply chains become more vulnerable to external tariff policies.
The growth of exports to alternative markets demonstrates existing demand, but maintaining this new flow requires Brazil to remain competitive — whether in terms of cost, regulation, quality, logistics, or predictability. The sales crisis in the U.S. market is forcing exporters to explore different destinations — Europe and Latin America, for instance. The more diversified the export markets, the lower the risk of being impacted by the policies of a single country. A key factor mentioned is the need for international agreements and regulatory reciprocity. In other words, if regulatory standards between Brazil and its partners are more closely aligned, trade and bureaucratic barriers can be reduced, facilitating exports.
The most complex, higher value-added medical devices are disproportionately affected by higher tariffs, as their costs already involve specialized raw materials, advanced technology, and strict regulatory compliance. Dependency on external components and inputs — particularly from the U.S. — creates vulnerability: exchange rate fluctuations, logistics costs, and external tariff and regulatory barriers can all impact the final cost and competitiveness of Brazilian products.
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The U.S. tarifaço created an immediate shock for the Brazilian medical device sector, especially in higher value-added categories. However, this shock also acted as a catalyst for exporters to seek alternatives: more markets in Europe, Latin America, and potentially beyond. To ensure that this change of route is not merely temporary or superficial, Brazil will need to improve its competitiveness conditions — through public policies, infrastructure, tax incentives, international regulatory harmonization, and diversification of export destinations.
In this context, Passarini Group acts as a strategic partner for Brazilian companies, providing comprehensive support to expand business operations and ensure regulatory compliance in new markets. With international expertise, Passarini Group facilitates the entry of medical devices into alternative destinations, helping transform challenges into opportunities for global growth. Click the button below and get in touch with us.
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