Founded 64 years ago by an electrician, an accountant, and a mechanic, the Brazilian WEG has grown into a global powerhouse in electric motors and automation, with operations in 17 countries and clients in over 135 nations worldwide. The company’s success has not only generated significant wealth for its founders’ descendants but also to the local economy, providing employment and healthcare services to a substantial portion of the headquarter’s district. However, recent US trade policies have introduced new challenges.
President Donald Trump’s administration imposed a 10% tariff on all Brazilian exports to the US. This move, part of a broader strategy to address perceived trade imbalances, has raised concerns among Brazilian industries about potential ripple effects, including global economic instability and shifts in trade dynamics.
Historically discrete and even secretive, WEG’s leadership has been vocal in its criticism of these tariffs. CEO Alberto Kuba labeled the tariffs as a “fundamental mistake”, emphasizing that such protectionist measures could hinder global economic growth. Despite these challenges, WEG’s diversified global operations and experience in navigating economic turbulence position it to adapt effectively. The company has previously managed to maintain supply chains during crises, such as the pandemic, by leveraging its international manufacturing footprint.
Financially, WEG historically demonstrates strong performance. In 2024, the company reported net revenue of R$ 38 billion, the equivalent of US$ 6,7 billion, with 57% of the total amount derived from external markets. Its strategic positioning and commitment to innovation have allowed it to weather market fluctuations and maintain investor confidence. The company is worth around US$ 30 billion at the Brazilian stock market.
As trade tensions persist, WEG’s situation underscores the complexities faced by multinational companies, even the ones operating in historically cooperative and diplomatic countries, in regards to the US, amid shifting geopolitical landscapes. The company’s proactive strategies and global diversification may serve as a model for resilience in the face of protectionist policies.
