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US 25% tariff on Brazilian exports takes effect; Brazil rolls out R$18.5 bn support plan
On 22 July 2026 the United States implemented a 25 percent additional tariff on about 3,000 Brazilian products, ranging from agricultural machinery and industrial goods to footwear and textiles. The measure, imposed under Section 301 of the Trade Act, targets roughly 15‑18 percent of Brazil’s U.S.‑bound exports and is estimated to affect between US$7 billion and US$11 billion in annual trade value. The U.S. justification cites digital‑trade practices, the Brazilian instant‑payment system Pix, alleged deforestation, corruption and other perceived unfair practices. Key items such as coffee, beef, orange juice, aircraft parts and petroleum were exempted.
The Brazilian government, led by President Luiz Inácio Lula da Silva and Vice‑President Geraldo Alckmin, responded with the third phase of Plano Brasil Soberano, authorising R$18.5 billion in subsidised credit lines (R$13.5 billion from the Treasury and R$5 billion from BNDES). The programme targets exporters and strategic sectors, offering interest rates as low as 3 percent per year for critical mineral projects and up to 9.8 percent for working‑capital loans. Meetings with industry groups, state federations (e.g., Goiás, Santa Catarina) and the shoe‑industry association Abicalçados were held to shape the assistance, though some sectors warn that the support may be insufficient.
President Lula affirmed that Brazil will not “cry” over the tariff and will seek new markets while keeping diplomatic channels open. The government also signalled the possibility of a further 12.5 percent surcharge if the United States persists, but emphasized that any reciprocity measures would follow legal procedures rather than automatic retaliation.