Lula launched subsidized credit for exporters and manufacturers hit by new U.S. duties, as Brazil said about 2,000 product categories including coffee and orange juice are exempt from the latest measures.
President Luiz Inacio Lula da Silva signed an executive decree opening an 18.5 billion reais ($3.65 billion) emergency credit line to help Brazilian companies cope with new U.S. tariffs. Brazil said roughly 2,000 to 2,100 product categories exported to the United States are exempt from the latest measures, including coffee, orange juice, beef, crude oil and commercial aircraft components, while sectors such as footwear, machinery and equipment face both a new 12.5% tariff tied to forced labor concerns and a separate 25% tariff announced earlier over alleged unfair trade practices. The subsidized financing, called “Sovereign Brazil III,” draws 13.5 billion reais from unallocated Treasury resources and the remainder from BNDES. Lula said Brazil will keep seeking talks with Washington while expanding trade with partners in Asia, Europe and the Middle East.