Haddad Meets Trump’s Treasury Chief: Data Centers and Tariff Conversations Top Agenda

Brazilian Finance Minister Fernando Haddad met with US Treasury Secretary Scott Bessent on Sunday in Los Angeles. Their 40-minute discussion marked their first face-to-face meeting since Donald Trump returned to the White House in January 2025.

Haddad reported that Bessent showed “important openness to dialogue” regarding commercial tensions between the two nations. Brazil faces a 10% surcharge on its products and 25% tariffs on steel and aluminum imposed by the Trump administration in March.

The minister emphasized that South America maintains a trade deficit with the United States. He argued against maintaining tariffs on Brazil and the region, advocating for negotiation rather than retaliation.

Haddad’s California trip primarily aims to attract investments in data centers by promoting Brazil’s new national plan. The Brazilian government prepares to offer substantial tax incentives for data center operators establishing digital infrastructure in the country.

The proposal would exempt IT equipment investments from four key federal taxes: PIS, Cofins, IPI, and import duties. Qualifying operators must commit to using 100% renewable energy and reserve space for domestic customers.

Brazil Courts Tech Giants to Boost AI and Data Infrastructure

Brazil’s Finance Ministry estimates this initiative could unlock approximately 2 trillion reais ($352 billion) in investments over the next decade. The country promotes its abundant clean energy supply as a key advantage, with up to 80% of its power grid from renewable sources.

This push aligns with Brazil’s broader technology strategy launched in July 2024. The Brazilian Artificial Intelligence Plan allocates 23.03 billion reais ($4 billion) over four years, with nearly 14 billion reais for business projects including data center development.

Haddad’s itinerary includes meetings with Google CFO Ruth Porat and Nvidia CEO Jensen Huang on Monday. He plans to visit Nvidia’s facilities and meet with Amazon executives on Tuesday before departing for Mexico.

Brazil’s data center market is projected to reach $5.96 billion by 2030, growing at a CAGR of 9.81%. Major cloud providers continue expanding their Brazilian presence, with Microsoft investing $2.70 billion in cloud and AI infrastructure over three years.

Amazon Web Services announced plans to invest approximately $1.80 billion to expand data center operations through 2034. Sao Paulo remains Brazil’s leading hub for data center expansion with over 40 existing and 20+ upcoming facilities.