Key facts
- Brazil authorized nearly 13.3 billion reais ($2.6 billion) in credit for its rural sector.
- The credit package includes funds for rural technology development, debt refinancing, and support for sugarcane producers.
- The U.S. imposed a 25% tariff on numerous Brazilian products, citing unfair trade practices.
- Brazilian Finance Minister Dario Durigan indicated that further support measures could be announced by early August.
- The U.S. tariff replaces ones previously struck down by the Supreme Court.
Brazil's government has authorized nearly 13.3 billion reais ($2.6 billion) in extraordinary credit to support its rural sector, including development programs, debt refinancing, and aid for sugarcane producers impacted by recent U.S. tariffs. The announcement, published in an official gazette, comes after the Trump administration imposed a 25% tariff on numerous Brazilian products, citing unfair trade practices.
The allocated funds include 9 billion reais for rural technology development projects aimed at boosting productivity and competitiveness, and 3 billion reais for a program to assist borrowers with financial rebalancing. Additionally, 270 million reais will be provided as economic subsidies to independent sugarcane producers in the Northeast region, who have been affected by extreme weather and the new U.S. tariffs.
Brazilian Finance Minister Dario Durigan indicated that further support measures for sectors hit by U.S. trade actions could be announced by early August. The executive order takes immediate effect for a limited period, pending approval from Brazil's Congress.