Brazilian sectors hit by US tariffs to get relief plan
The Brazilian government announced on Thursday (Jul. 16) that it will resume the support program for business sectors affected by the tariff hike imposed by the United States and announced the same day by the Office of the US Trade Representative (USTR).
Brazil rejects the justifications for the additional 25 percent tariff on some of its products, which the United States says is justified by alleged “unfair” trade practices by Brazil. The new tariffs take effect on July 22.
“From now on, the Brazilian government’s priority is to assist and support these sectors in the face of this unfair, unwarranted, and illegal tariff imposed on us,” said Márcio Elias Rosa, executive secretary of the Ministry of Development, Industry, Trade, and Services, during a press conference in Brasília alongside Vice President Geraldo Alckmin and other government officials, including Finance Minister Dario Durigan.
According to Rosa, the sectors hardest hit this time are wood products, machinery and electrical equipment, furniture, ceramic products, footwear, and sugar. They are expected to receive credit lines for working capital and investment, as well as support in finding new markets and customers.
Data from the Foreign Trade Secretariat (Secex), part of the ministry, indicate that 2,400 Brazilian companies have been directly affected by the tariff hike. Together, they account for about 18 percent of Brazil’s exports to the United States, representing an estimated USD 7.4 billion in trade.
Last year, exports from these sectors to the United States fell to USD 5.5 billion.
However, more than half of Brazil’s exports to the United States - including meat, coffee, oils, and aviation products - were exempted from the tariffs under a US decision.
The United States’ share of Brazil’s exports fell from 12.1 percent last year to 9.4 percent in 2026, and the government will continue to pursue a policy of market diversification for these products, Márcio Elias Rosa stated.
Foreign interference
The finance minister described the US decision as undue foreign interference.
“From the government’s perspective, this kind of external interference - whether political, economic, or otherwise - is unacceptable when it is intended to intimidate or embarrass Brazil, Brazilian families, business owners, and Brazilian workers,” Dario Durigan explained.
According to him, all of the US’s allegations are false and unsupported by any concrete evidence.
Durigan pointed out that the tariff hike will not affect Brazil’s macroeconomic stability and that the government’s relief measures are expected to involve smaller credit lines than last year, as the list of tariff exemptions is longer this time.
Pix
Among the issues raised by US officials during the various rounds of negotiations since last year is Pix, the Brazilian instant payment system created by the Central Bank.
During the press conference, the bank’s president, Gabriel Galípolo, stressed that Pix is not a valid justification for the tariff hike and that US credit card companies - which are among the market Leaders - were not directly affected.
“As preposterous as this argument may seem, it has not been proven. Looking at what has actually happened since Pix was implemented, the credit card market has grown by 150 percent. What is losing ground are checks and cash, which is absolutely desirable for everyone,” Galípolo noted.
Reciprocity
Brazil’s Vice President Geraldo Alckmin, a former Minister of Development, Industry, Trade, and Services and one of Brazil’s negotiators with the US, said that moving forward, the government will explore ways to implement the Reciprocity Law.
Passed by Congress last year, the law establishes criteria for suspending trade concessions in response to unilateral actions, policies, or practices by another country that negatively affect Brazil’s economic competitiveness.
“We have a law- the Reciprocity Law - that was unanimously approved by Congress, and the Brazilian government will know how to implement it at the appropriate time,” said Alckmin, who described the new tariff hike as “unfair” and “unwarranted.”
