Brazil and U.S. Advance Tariff Negotiations Amidst Economic Impact on Exports
Brazil expands support for exporters affected by U.S. tariffs while diplomats advance bilateral trade negotiations to alleviate economic impacts.
- • Brazil expands Brazil Sovereign Plan to assist exporters with at least 1% revenue impact from U.S. tariffs.
- • Brazil submitted a negotiation proposal to the U.S. on November 4 amid ongoing tariff discussions.
- • U.S. tariffs of 50% on Brazilian exports have significantly affected sectors like coffee.
- • Brazil's Foreign Minister met with U.S. Secretary of State during the G7 meeting to advance tariff negotiations.
- • Sanctions against Brazilian officials remain despite improved dialogues and planned follow-up meetings.
Key details
Brazil is actively addressing the economic repercussions caused by the United States’ imposition of a 50% tariff on most Brazilian exports since July 2025. These tariffs have notably affected Brazilian exporters, including key sectors such as coffee, where the U.S., as the largest consumer, imports a substantial volume. Efforts to resolve these trade tensions have led to bilateral negotiations and government support initiatives.
On November 12, the Brazilian Ministries of Finance and Development, Industry, Commerce, and Services published Ordinance 21, expanding the Brazil Sovereign Plan to aid companies impacted by the U.S. tariffs. Previously available only to exporters experiencing over 5% impact on revenue from U.S. sales, the program now covers companies with at least a 1% export revenue impact between July 2024 and June 2025. This expansion also includes suppliers to exporters, enabling broader access to emergency credit lines totaling R$30 billion, managed by the National Bank for Economic and Social Development (BNDES). Vice President and MDIC Minister Geraldo Alckmin underscored the government’s commitment to supporting the productive sector while negotiations continue with the U.S.
Simultaneously, Brazil’s Foreign Minister Mauro Vieira met with U.S. Secretary of State Marco Rubio in Niagara, Canada, during the G7 summit to discuss progress in tariff negotiations. Vieira informed Rubio about Brazil’s negotiation proposal submitted on November 4 and highlighted ongoing technical discussions between both countries. This diplomatic exchange follows a previous agreement by President Luiz Inácio Lula da Silva and former U.S. President Donald Trump in Malaysia in October to push forward trade talks.
Despite these dialogues, U.S. sanctions remain in place, including visa and financial restrictions on Brazilian officials such as Minister Alexandre de Moraes. Further meetings involving Brazilian Vice President Alckmin and Finance Minister Fernando Haddad are scheduled to continue assessing negotiation progress. Although U.S. former President Trump hinted at possible tariff relief on Brazilian coffee, this was not on the agenda during the recent meeting.
Currently, both nations remain focused on balancing economic interests amidst complex geopolitical dynamics, aiming for a resolution that benefits Brazilian exporters and mitigates tariff-induced losses.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.