Brazil has launched the "Sovereign Brazil" Provisional Measure, a significant economic initiative backed by a R$30 billion aid package, aimed at mitigating the impact of escalating U.S. tariffs on Brazilian exports. President Luiz Inácio Lula da Silva spearheaded the measure, which addresses the recent tariff increases, ranging from 10% to 50%, affecting key sectors such as coffee, meat, seafood, textiles, footwear, and fruits. The initiative includes a R$30 billion credit line through the Export Guarantee Fund to provide immediate financial relief and ensure operational continuity for affected businesses.
The "Sovereign Brazil" plan also incorporates fiscal relief measures, including a R$5 billion tax refund via the Reintegra program, now accessible to all exporting companies, including micro and small enterprises. Legislative leaders, such as Chamber of Deputies President Hugo Motta and Senate President Davi Alcolumbre, have expressed strong support for the measure, emphasizing its importance in safeguarding domestic industries and preserving employment. Concurrently, Brazil is pursuing market diversification, with President Lula engaging in diplomatic efforts with countries like China, Russia, and India to explore new commercial avenues and strengthen existing trade relationships. In 2024, China alone represented a substantial portion of Brazil's agricultural exports, highlighting the growing significance of these alternative markets, with Brazilian coffee exports to China showing a notable increase, evidenced by the approval of 183 new Brazilian coffee companies for export to the Chinese market in July 2025.