Brazil's Government Pledges Credit Lines For Sectors Affected by U.S. Tariffs

Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

Summary

Brazil announced 18.5 billion reais (US$3.6 billion) in credit lines for local companies faced with U.S. tariffs and international conflicts. The package was unveiled on Wednesday, July 22, the same day a new 25% U.S. tariff on Brazilian goods was imposed. Brazil exported US$37.7 billion of goods to the U.S. in 2025.

U.S. Imposes Additional 25% on Brazil

The Government of Luiz Inacio Lula da Silva announced 18.5 billion reais (about US$3.6 billion) in credit lines to support Brazilian companies in sectors impacted by U.S. tariffs and international conflicts. The announcement came as an additional 25% tariff was imposed by the U.S. on Brazil on Wednesday, July 22.

A separate 12.5% U.S. tariff took effect on Friday after Washington concluded that Brazil had failed to impose and effectively enforce an adequate prohibition on imports of goods produced with forced labor. According to Industrial Info Resources data, there are nearly 1,300 capital projects under construction in Brazil worth US$93 billion, ranging from nuclear plants to coffee bean storage.

The credit package combines 13.5 billion reais (US$2.66 billion) from Brazil's National Treasury with another 5 billion reais (US$980 million) from the Brazilian Development Bank (BNDES).

"The funds may be used for working capital, the acquisition of capital goods, productive investments, technological innovation, the adaptation of products and processes, and the identification and development of new markets," the government statement said.

The credit lines may also finance technical innovation to comply with specific requirements applicable to international trade.

The industrial sectors included in these credit lines range from mining, steel, and electrical equipment to footwear and other sectors. Moreover, sectors considered strategic for national interests such as fertilizers, critical minerals, chemical products, pharmaceuticals, and more are also eligible for these credit lines.

However, the financial measure is not limited to companies exporting to the U.S. It also includes companies impacted by international conflict, particularly exporters serving markets such as Saudi Arabia, Bahrain, the United Arab Emirates, Kuwait, Oman and other Arab states.

New Round of Tariffs

On Wednesday, the U.S. imposed an additional 25% tariff on certain Brazilian goods following a yearlong investigation into Brazilian measures involving digital trade, electronic payments and ethanol market access.

The tariff will not apply across Brazil's export basket. A list of exempt products remains, while goods already covered by certain US Section 232 tariffs are generally excluded from the new Section 301 duty. These include specified steel, aluminum and copper products, automobiles and parts, wood products and semiconductors.

The U.S. also granted product-specific exemptions covering goods such as pig iron, aluminum hydroxide, certain iron and steel scrap, instant coffee, seafood, pharmaceuticals and some wood products.

Additionally, Washington imposed on Brazil a second 12.5% tariff on Friday over what it claimed was Brazil's failure to impose and enforce forced labor restrictions. Including Brazil, a group of 60 economies were hit by tariffs ranging from 10% to 12.5%.

For non-exempt Brazilian goods covered by both actions, the two Section 301 surcharges may add 37.5 percentage points, on top of any ordinary customs duty and other applicable charges.

Key Economic Partner

According to the Brazilian Secretariat of Foreign Trade, the South American nation exported US$37.7 billion in goods to the U.S. and imported US$45.1 billion in goods in 2025.

Brazil's main exports to the U.S. include crude oil and petroleum products, iron and steel goods, aircraft, coffee, agricultural products, and more.

The U.S. was Brazil's second-largest individual-country export market in 2025, behind China. When the European Union is counted as a single bloc, the U.S. ranked third.

In June this year, Brazil exported another US$3.4 billion in products to the U.S., only behind China and the European Union.

Key Takeaways

• Brazil's government announced 18.5 billion reais (US$3.6 billion) in credit lines for Brazilian companies to face U.S, tariffs.
• Washington imposed an additional 25% tariff on certain Brazilian goods on July 22, followed by a separate 12.5% tariff on covered Brazilian goods on July 24.
• Brazil exported US$37.7 billion worth of products to the U.S. in 2025.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).