Maria Eduarda Xavier and Heloísa Nogueira
The Brazilian economy is entering yet another phase of intense strain.
In recent months, more than ever, we have observed a confluence of factors imposing even greater challenges on Brazilian entrepreneurship. Now, the high interest rates, persistent inflation, and exchange rate pressures we were already familiar with are compounded by a severe external shock: the imposition of a 50% tariff on all Brazilian products imported by the United States[1]—the second-largest destination for Brazilian exports.[2].
Consequently, the current landscape serves as a warning for companies operating in sectors sensitive to economic activity and those with high financial leverage—and especially for those reliant on foreign capital. The measure taken by U.S. President Donald Trump directly impacts the pillars of Brazilian exports[3] —such as coffee, beef, orange juice, and oil[4] —and represents a drastic shift in prevailing economic conditions.
This situation leads us to revisit a critical topic: how can companies avoid the much-dreaded judicial reorganization process?
First, it is important to acknowledge a fact: a crisis rarely strikes suddenly. It develops gradually, the result of accumulated poor decisions and changing circumstances, often stemming primarily from a failure to read the market strategically. Just as a captain needs the ability to spot a storm on the distant horizon, a business manager must be prepared to anticipate market moves—and know how to adjust their sails.
Therefore, precautions to avoid the need for judicial reorganization begin with strengthening strategic management, focusing on risk anticipation and a firm grasp of the company's finances and operational structure. To this end, adopting good corporate governance practices—such as establishing an efficient internal control system and maintaining an up-to-date, practical view of your business's status—is essential. After all, a well-governed company can respond swiftly to drastic market changes and enjoys greater credibility when negotiating with partners, creditors, and investors.
Another crucial point is having a deep understanding of all signed contracts, particularly banking agreements, including their interest rates and adjustment terms. In Brazil, many business owners focus solely on the monthly installment amount, failing to pay due attention to clauses regarding early maturity and interest amortization; during periods of instability, these clauses can significantly increase the debt burden and jeopardize the company's financial health.
Furthermore, company management must have a comprehensive overview of all debts, looking beyond standard cash flow monitoring. Installment plans and legacy liabilities often go unnoticed in day-to-day operations, yet it is precisely these overlooked obligations that surface during times of vulnerability. Therefore, a clear understanding of these details is vital for maintaining control over potential financial "traps."
Finally, your supplier and customer structure warrants even closer scrutiny. What is the level of concentration in your portfolio? What would happen if a client responsible for a large share of your revenue simply stopped buying? Or if your primary raw material supplier ceased operations?
In this context, maintaining varied commercial relationships is an essential strategy for ensuring operational resilience. A concentrated portfolio with low diversification is highly likely to become a company's weak link, leaving its operations more exposed to sudden disruptions. Conversely, a company with a diversified portfolio is better positioned to redirect flows and preserve revenue, even in the face of isolated losses.
If you are a business owner reading this, know that crises rarely arrive without warning; the signs are there, and recognizing them in time makes all the difference. At such times, relying on the expert insight of trusted professionals—such as legal and accounting advisors—can help devise safer, more effective, and realistic strategies for your company. Ultimately, prevention is always preferable to damage control; with proper planning and technical support, you retain the freedom to choose your path rather than being forced into a choice that has become inevitable.
[1] FORBES, US to Impose 50% Tariff on Brazilian Products—Highest to Date. Available at: <https://forbes.com.br/forbes-money/2025/07/eua-vao-taxar-produtos-brasileiros-em-50-maior-tarifa-ate-agora/>. Accessed on: July 14, 2025.
[2] LIRA, R. DE. The US is Brazil's 2ndthe largest trading partner but leads in industrial purchases. Available at: <https://www.infomoney.com.br/economia/eua-e-o-2o-maior-parceiro-comercial-do-brasil-mas-lidera-nas-compras-industriais/>. Accessed on: July 14, 2025.
[3] Trump’s tariff: Is São Paulo the most affected? Which states stand to lose the most from the taxation – BBC News Brasil. Available at: <https://www.bbc.com/portuguese/articles/cwyg9nvnldpo>. Accessed on: July 14, 2025.
[4] What are the top 10 Brazilian products exported to the US? Find out the impact. Available at: <https://g1.globo.com/economia/noticia/2025/07/10/como-tarifa-de-50-dos-eua-afeta-as-exportacoes-brasileiras.ghtml>. Accessed on: July 14, 2025.
