In response to the tariffs imposed by the United States of America on Brazilian exports, the Brazilian federal government launched on the morning of 08/13 an aid plan to protect affected exporters. The plan was adopted through Provisional Measure No. 1,309/2025.
The government points out that the measures aim not only to protect Brazilian exporters, but also to encourage new investments to be made in strategic sectors and increase the resilience of the Brazilian productive structure, thus ensuring the continuity of the country’s economic development. The government’s vision is forward-looking, trying to go beyond a simple mitigation of the impacts of US measures.
Named “Sovereign Brazil”, the plan contemplates three axes for the initial actions proposed by the government: (i) strengthen the Brazilian productive sector; (ii) protect the workers of the harmed national industry; and (iii) reassure the trade diplomacy and multilateralism.
To strengthen the productive sector, the government will implement the following measures:
- Creation of a credit line of 30 billion, with affordable rates. The line will prioritize the most affected sectors and smaller companies.
- Extension, for an additional year, of the export deadlines for products under the Drawback regime that should be exported to the United States until the end of this year.
- Authorization for the Federal Revenue to increase the payment period, by 2 months, of federal taxes for the companies most affected by the new tariffs.
- Authorization for the Union, states and municipalities to purchase food products affected by the surcharges for their food programs.
- Government contributions to guarantee funds, namely: R$ 1.5 billion in the Foreign Trade Guarantee Fund (FGCE); R$ 2 billion in the Investment Guarantee Fund (FGI), of the BNDES; and R$ 1 billion in the Operations Guarantee Fund (FGO), of Banco do Brasil, aimed primarily to small and medium-sized exporters.
- Expansion and change of the conditions of the Reintegra program, anticipating the effects of the Brazilian tax reform that will come into force in 2027.
The measures to strengthen the productive sector also aim to protect the workers of the affected companies, with access to controlled credit lines, conditioned to the maintenance of jobs. A National Employment Monitoring Chamber will be installed to monitor employment levels in companies and related production chains.
Finally, on the front focused on trade diplomacy and strengthening multilateralism, Brazil seeks to obtain new markets, through the negotiation of new trade agreements. The Vice President and Minister of Development, Industry, Commerce and Services Geraldo Alckmin is scheduled to visit Mexico at the end of August, aiming to deepen existing relations and develop new business opportunities with the country. The trend is that other negotiations already underway, such as those with the United Arab Emirates and Canada, will also take new breath for their conclusion.