Key facts
- Brazil authorized nearly 13.3 billion reais ($2.6 billion) in extraordinary credit.
- The credit package targets rural development, debt refinancing, and sugarcane producers.
- The U.S. imposed a 25% tariff on numerous Brazilian products in response to alleged unfair trade practices.
- 9 billion reais is allocated for rural technology development projects.
- 3 billion reais is designated for a financial rebalancing program for borrowers.
- 270 million reais will support independent sugarcane producers in the Northeast.
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.