Key facts
- Brazil's government announced 18.5 billion reais ($3.66 billion) in financing for companies hit by U.S. tariffs.
- The funds are also intended for companies impacted by international conflicts.
- The Brazilian Treasury will contribute 13.5 billion reais to the financing package.
- The remaining 5 billion reais will be provided by the state-run development bank BNDES.
The Brazilian government has announced a significant financial aid package totaling 18.5 billion reais (approximately $3.66 billion) to support companies affected by U.S. tariffs. The initiative, revealed on Wednesday, will also extend to firms impacted by broader international conflicts.
President Luiz Inacio Lula da Silva's administration stated that the financing will be sourced from both the Treasury, which will provide 13.5 billion reais, and the state-run development bank BNDES, which will contribute the remaining 5 billion reais.
Separately, analysis of U.S. tariff policy indicates that President Trump imposed tariffs on nearly all trading partners under the International Emergency Economic Powers Act (IEEPA) and on several sectors using Section 232. A Supreme Court ruling in February 2026 determined that IEEPA does not authorize tariffs, leaving only the new Section 232 tariffs in place. Trump subsequently imposed a 10 percent tariff on nearly all countries under Section 122, effective February 24, 2026, applying to an estimated $1.2 trillion of annual imports. This Section 122 tariff is scheduled to expire after 150 days. The revised Section 232 tariffs on steel, aluminum, and copper, along with new tariffs on pharmaceuticals and the Section 122 tariff, are estimated to raise the weighted average applied tariff rate to 11.7 percent. These tariffs are projected to raise $956 billion in revenue from 2026-2035.