Mexico, Brazil Bolster Trade Relations Amid US Tariff Strain

Amid US tariff trade tensions, Mexican Foreign Minister Juan Ramón de la Fuente welcomed Brazilian Vice President Geraldo Alckmin to Mexico, accompanied by a large business delegation aimed at expanding bilateral trade relations. Alckmin, who also serves as Brazil’s minister of Development, Industry, Commerce and Services, began a two-day working visit as part of follow-up to a meeting between Mexican President Claudia Sheinbaum Pardo and Brazilian President Luiz Inácio Lula da Silva at the G7 summit in Canada.

“The vice president is set to hold meetings with members of the federal cabinet, attend an official session in the Senate and meet with representatives of the Mexican and Brazilian business sectors,” de la Fuente said in a statement.

On Thursday, Alckmin is expected to participate in forums in Mexico City bringing together about 250 business leaders from both countries before meeting with Sheinbaum.

During the visit, Alckmin also met with Mexico’s Agriculture Secretary Julio Berdegué, with whom he signed a memorandum of cooperation in agri-food matters, including science, technology, sustainability, family farming, agroecology and social inclusion.

Brazil’s delegation included Agriculture Minister Carlos Fávaro, Planning Minister Simone Tebet, Deputy Foreign Minister Maria Laura da Rocha and executives from state agencies and private companies.

The talks come as Mexico and Brazil, Latin America’s two largest economies, seek to deepen and diversify trade to counter the impact of tariffs imposed by US President Donald Trump. Bilateral trade reached US$13.6 billion in 2024, with Brazil holding a surplus. Brazilian exports to Mexico totaled US$7.8 billion that year, driven by industrial goods and agricultural products.

MBN reported earlier this month that an increasing number of Brazilian investments are poised to reach Mexico, with 42 companies preparing to expand into the country despite lingering concerns over US trade policies, said the Brazil-Mexico Chamber of Commerce. These businesses are targeting a range of sectors, including cloud services, logistics, auto parts distribution, food, and data centers, and many of them have plans to establish operations in major industrial hubs such as Monterrey, Saltillo, Queretaro, Tijuana, Guadalajara, Juarez and Mexico City.

“We are working on 42 investment projects from Brazilian companies looking to open markets or build operations in Mexico,” said Liborio Rauber, President, Brazil-Mexico Chamber of Commerce (BRAMEXCAM). This, despite potential US tariffs, volatile markets and lack of a bilateral trade agreement. Rauber emphasized that for every Mexican company entering Brazil, 21 Brazilian firms are aiming to set up in Mexico, highlighting the country's growing appeal for international expansion.

Currently, 716 Brazilian companies operate in Mexico, compared to just 48 Mexican firms in Brazil, said Rauber.