razilian President Luiz Inácio Lula da Silva announced Tuesday that his government will provide 30 billion reais ($5.55 billion) in credit to help domestic exporters navigate newly increased tariffs from the United States.
Speaking in an interview with local outlet BandNews, Lula said the funding is an initial measure to assist companies facing higher U.S. import duties. The broader relief package, set to be formally unveiled Wednesday in Brasília, will also include government purchase programs aimed at bolstering affected industries.
According to the president’s office, the plan will be presented at an event scheduled for 11:30 a.m. local time (1430 GMT). The announcement follows earlier reports from Reuters that the government was considering reallocating around 30 billion reais from a fund managed by the state development bank BNDES to support businesses impacted by the tariff hikes.
Earlier this month, Washington raised tariffs on a wide range of Brazilian goods from 10% to 50%. Certain products, including orange juice and aircraft, were exempted from the increase. The sharp jump in duties has raised concerns about the competitiveness of Brazilian exports in the U.S. market, which is one of Brazil’s largest trading partners.
Lula emphasized that the credit program is intended to give exporters immediate financial breathing room while the government works on longer-term strategies to protect trade flows. “This is the first step,” he said, adding that additional measures could follow depending on how global trade dynamics evolve.
The move underscores rising trade tensions between Brasília and Washington as both nations navigate shifting economic priorities. Brazil is seeking to maintain market access for key exports such as agricultural products, manufactured goods, and commodities, while also protecting jobs and revenue in sectors heavily reliant on U.S. buyers.
At the current exchange rate of 5.4020 reais to the dollar, the announced credit line represents one of the largest recent government interventions aimed specifically at offsetting foreign trade disruptions.