Brazil unveils credit package to protect exporters from 25% US tariff

Brazilian President Luiz Inacio Lula da Silva recently signed an executive decree opening an 18.5-billion reais ($3.65-billion) emergency credit line to protect domestic firms against a new 25-per cent US tariff.The new US tariffs followed a probe by the Office of the United States Trade Representative (USTR), which concluded that several of Brazil’s commercial and digital policies unfairly burdened US commerce. The levies hit the industrial machinery, sugar, ethanol, timber and footwear sectors hardest.

Brazil has opened a $3.65-billion emergency credit line to protect domestic firms against a new 25-per cent US tariff.
Termed ‘Sovereign Brazil III’, the initiative marks the government’s third major relief package aimed at helping exporters navigate trade disputes with the US.
The initiative’s funding draws $2.66 billion from unallocated treasury funds, with the rest supplied by state development bank.

Termed ‘Sovereign Brazil III’, the initiative marks the government’s third major relief package aimed at helping exporters navigate trade disputes with the United States.

“We are demonstrating that there is no crisis that can prevent Brazil from continuing its trajectory of economic growth,” he was quoted as saying by media reports from the country.

The initiative’s funding draws 13.5 billion reais ($2.66 billion) from unallocated treasury funds reserved during a 2025 credit rollout, with the rest supplied by the country’s official development bank BNDES.

Fibre2Fashion News Desk (DS)