Brazilian Companies Hit By Us Tariff Kike To Have Brl18.5b In Aid

By Wellton Maximo

Key Takeaways:

• Brazil Launches Sovereign Brazil Plan 3: The government announced a BRL 18.5 billion credit package with subsidized interest rates to support exporters and strategic sectors hit by the new 25% US tariff increase, which affects about 15% of Brazilian exports to the US (worth USD 5.8 billion).
• Expanded Scope and Flexible Uses: Beyond tariff-affected companies, the plan now covers businesses harmed by international conflicts (especially in the Persian Gulf) and strategic areas such as critical minerals and agribusiness; funds can be used for working capital, machinery, innovation, market expansion, and compliance adjustments.
• Part of a Multi-Phase Response: This is the third phase of the Sovereign Brazil Plan (following BRL 30 billion in 2025 and BRL 21 billion earlier in 2026), financed through National Treasury and BNDES resources, and includes credit insurance for small businesses.

On the day the new US tariff hike took effect, the Brazilian government announced a new support package for companies in the country. Dubbed Sovereign Brazil Plan 3 (Plano Brasil Soberano 3 in the original), the initiative provides BRL 18.5 billion in credit lines with subsidized interest rates for exporters and sectors considered strategic to the economy, such as critical minerals and agribusiness.

The program also aims to benefit businesses affected by international conflicts. The announcement coincides with the entry into effect of the additional 25 percent tariff imposed by the US government on a portion of Brazilian products exported to the North American market.

According to Brazil’s Ministry of Development, Industry, Trade, and Services, the measure is expected to affect approximately 15 percent of Brazil’s exports to the US – the equivalent to USD 5.8 billion in exports.

To make the plan feasible, Brazilian President Luiz Inácio Lula da Silva issued a new provisional measure authorizing the use of funds from the National Treasury in conjunction with the country’s social development bank’s (BNDES) own resources to finance the new credit lines.

The credit lines may be used for:

• working capital;
• purchase of machinery and equipment;
• productive investments;
• technological innovation;
• product and process adaptation;
• opening and exploring new markets.

Financing rates vary depending on the purpose of the loan, ranging from three percent a year for projects related to critical minerals to 9.80 percent per year for working capital intended for large companies.

New beneficiaries

In addition to companies directly affected by the US tariff hike, the program now includes exporters harmed by international conflicts – especially those with operations in the Persian Gulf – and expands access to credit for strategic sectors, such as mining.

The legislation also allows the funds to be used for adjustments required by international trade, such as health care, environmental, traceability, and compliance requirements.

Insurance and support

During the announcement ceremony, vice-President Geraldo Alckmin noted that the program goes beyond simply offering credit.

“Sovereign Brazil 3, in addition to guaranteeing credit for the companies involved, offers another benefit – credit insurance for small businesses,” he declared.

The plan for allocating the funds should be drafted by BNDES and submitted for approval to an interministerial council, which will define financing priorities based on the impacts faced by each sector.

Background

The Sovereign Brazil Plan was created in 2025 to support exporting companies in the face of the first tariff measures adopted by the US. Its three phases are as follows:

August 2025, Sovereign Brazil Plan 1 – BRL 30 billion;
March 2026, Sovereign Brazil Plan 2 – BRL 21 billion;
July 2026, Sovereign Brazil Plan 3 – BRL 18.5 billion.