Brazil unveils R$30 billion plan to aid exporters hit by U.S. tariffs

The Presidency of the Republic published this Tuesday (August 2) a provisional measure that releases R$30 billion for the Brazil Sovereign Plan, a set of actions launched by the government in August to mitigate the economic impacts of the increase in import tariffs on Brazilian products announced by the United States. The extraordinary credit was opened through MP 1,310/2025, published in the Official Gazette of the Union (DOU).

According to the government, the plan aims to protect Brazilian exporters, preserve jobs, encourage investment in strategic sectors, and ensure the country’s continued economic development.

The MP secures R$30 billion from the Export Guarantee Fund (FGE) for credit with affordable rates, expanding export financing lines. It also extends the suspension of taxes for exporting companies; increases the reimbursement percentage of federal taxes through Reintegra; and facilitates the purchase of food products by public entities.

Provisional measures have the force of law and are issued by the President of the Republic in situations of relevance and urgency. MPs have immediate legal effect but must be voted on by both houses of the National Congress (Chamber and Senate) to be definitively converted into ordinary law.

The initial validity period is 60 days and will be automatically extended for an equal period if the vote is not concluded. If the review is not completed within 120 days, the MP loses its validity.

Actions
The measures are aimed at private legal entities that export goods affected by the tariffs to the United States and are registered in official foreign trade systems. They may also apply to individuals who export goods on a business or professional basis, duly registered as exporters with the competent authorities, under the categories of individual companies, individual microentrepreneurs (MEI), and rural producers with a CNPJ.

To access the credit and guarantee actions provided, entities must be in good standing with the Federal Revenue Service and the National Treasury Attorney’s Office (PGFN) regarding federal taxes and contributions. Entities under judicial or extrajudicial recovery, bankruptcy, or liquidation cannot benefit from the measures, except where a court-approved recovery plan has been demonstrated.

Priority will be given to companies that recorded at least 5% of their total revenue between July 2024 and June 2025 from exports of products affected by the additional U.S. tariffs.

Companies whose gross revenue from exports of affected products equals or exceeds 20% of their total revenue in the same period may access financing lines under more favorable conditions. In the case of guarantees under the Emergency Credit Access Program (PEAC-FGI Solidário), only companies with gross annual revenue of up to R$300 million in the year prior to contracting (SMEs) will have access.

The Brazil Sovereign Plan also aims to strengthen the national export financing and insurance system, making the country more competitive and less vulnerable to external actions in the future.

Credit lines
The use of R$30 billion from the Export Guarantee Fund to offer credit at lower rates will prioritize the most affected sectors. The priorities will be: dependence on revenue from exports to the U.S., type of product, and company size.

Small and medium-sized companies will also be able to access guaranteed funds to obtain credit.

Access to credit will be conditional on maintaining employment levels.

Extension of deadlines
The measure allows for an exceptional extension of the deadline to prove the export of products manufactured from imported or domestically acquired inputs with tax suspension.

The deadline for companies to export goods made with inputs under the suspended tax regime will be extended by one year. These goods may be exported to the U.S. or other destinations. Thus, companies will not have to pay fines and interest if they are unable to export to the U.S. within the originally established period.

The measure applies to companies that signed export contracts to the United States that were to be executed by the end of this year. Of the US$40 billion exported to the U.S. in 2024, US$10.5 billion were made under the drawback regime (a special customs regime that exempts taxes on imported inputs used in the manufacture of exported goods).

The extension has no fiscal impact, as it merely postpones the deadline for fulfilling the export commitments undertaken by Brazilian companies.

The Federal Revenue is authorized to defer (postpone) the collection of taxes for the companies most affected by the tariff hike. Payment for the next two months will be postponed for these companies.

Public purchases
Notably, the Union, states, and municipalities may make purchases for their food programs (such as school meals and hospital meals) through simplified procedures and market-average prices, ensuring transparency and oversight of the processes.

This measure applies only to products affected by the unilateral surtaxes.

Modernization of the export system
The MP expands the rules of export guarantee, a tool that protects exporters against risks such as default or contract cancellation.

The changes aim to strengthen exporters of medium and high-technological-intensity products and productive investments in the green economy. Banks and insurers will be able to use this guarantee in more types of operations.

The measure provides for risk-sharing mechanisms between the government and the private sector, using the Foreign Trade Guarantee Fund (FGCE) as a first-loss mechanism, increasing access to credit and lowering costs.

Guarantee funds
There will be additional allocations of R$1.5 billion to the Foreign Trade Guarantee Fund (FGCE); R$2 billion to the Investment Guarantee Fund (FGI) of BNDES; and R$1 billion to the Operations Guarantee Fund (FGO) of Banco do Brasil, primarily aimed at providing access to small and medium-sized exporters.

New Reintegra
The Special Tax Rebate Regime (Reintegra) for Exporting Companies returns to Brazilian exporters part of the taxes paid along the production chain, in the form of a tax credit, helping to reduce costs and increase competitiveness in the foreign market.

The measure anticipates the effects of the Tax Reform, which is expected to relieve export activity.

Currently, medium and large companies in the industrial sector receive a fixed rate of 0.1%, while micro and small enterprises, through the Acredita Exportação program, receive a 3% rebate.

The measure increases the benefit by up to 3 percentage points for companies whose exports of industrialized products were affected by the unilateral tariff measures. That is, to remain competitive in the U.S. market, medium and large companies will now receive a rebate rate of up to 3.1%, and micro and small companies will receive a rate of up to 6%.

The new Reintegra conditions will be valid until December 2026 and are expected to have an impact of up to R$5 billion.

Jobs
The Brazilian Sovereign Plan establishes the National Employment Monitoring Council to monitor employment levels in companies and their production chains, oversee obligations, benefits, and labor agreements, and propose actions aimed at preserving and maintaining jobs. Its operations will be coordinated at the national and regional levels through Regional Councils at the Regional Labor Superintendencies.

Among the planned duties are:

• Monitor diagnoses, studies, and information related to employment levels in companies and sectors directly affected by U.S. tariffs;
• Expand the analysis to identify indirect impacts on job creation and retention in production chain companies.
• monitor obligations, benefits, and payroll impacts from agreements aimed at preserving jobs and mitigating the effects of U.S. tariffs;
• Promote collective bargaining and conflict mediation to maintain a stable employment environment.
• Apply mechanisms related to emergency situations, such as lay-offs and temporary suspension of contracts, within legal bounds;
• Enforce agreed-upon obligations and job maintenance through the Labor Inspectorate.
• Use the regional structure of the Labor Superintendencies to engage workers and employers in negotiations that meet the needs of affected companies.
• Monitor the granting and payment of labor benefits to employees of companies directly affected.

Negotiations
The plan also works on the external front to expand and diversify markets, thereby reducing Brazil’s dependence on the United States for its exports.

In the area of trade diplomacy and multilateralism, Brazil has advanced in negotiations of agreements that open new opportunities for national companies:

• concluded negotiations: European Union; EFTA (European Free Trade Association)
• under negotiation: United Arab Emirates and Canada
• In the dialogue process: India, Vietnam.

Source: Agência Senado

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