Brazil Unveils 'Brazil Soberano 2.0' to Aid Exporters Hit by US Tariffs
Brazil launches 'Brazil Soberano 2.0' program to provide financial support to exporters affected by US tariffs on steel, aluminum, and auto parts using existing BNDES funds.
- • Brazil is preparing 'Brazil Soberano 2.0' to assist sectors hit by US Section 232 tariffs.
- • Tariffs affect steel and aluminum by up to 50% and auto parts by 25%.
- • BNDES President Aloizio Mercadante announced the plan will use existing funds, avoiding Treasury costs.
- • The initial program had R$30 billion available, with R$17 billion used, and leftover funds will support ongoing challenges.
- • The Ministry of Finance is structuring the plan, awaiting President Lula's strategic direction.
Key details
The Brazilian government is preparing a new support plan titled 'Brazil Soberano 2.0' to assist export sectors still affected by US tariffs, particularly under Section 232. Vice President and Minister of Development, Industry, and Trade, Geraldo Alckmin, confirmed efforts to help companies impacted by tariffs of up to 50% on steel and aluminum, as well as 25% on auto parts in the US market.
Aloizio Mercadante, president of the National Bank for Economic and Social Development (BNDES), detailed that the plan will leverage existing BNDES resources, avoiding the need for Treasury funds. The new initiative builds on last year's 'Brazil Soberano' program, which had a credit line of R$30 billion but saw only R$17 billion utilized. The government intends to allocate some of the remaining funds to support sectors facing prolonged economic challenges due to the so-called 'tarifão'.
Mercadante noted that the Ministry of Finance is structuring the plan and awaits President Lula's strategic guidelines. This follow-up program reflects a targeted effort to sustain Brazil’s export sectors amid continuing global trade tensions and devaluation pressures.
The original Brazil Soberano program was designed to provide extraordinary credit to exporters affected by increased tariffs, with a focus on industries like steel and aluminum. The upcoming 'Brazil Soberano 2.0' aims to enhance this support without further expanding government expenditure, signaling the administration's commitment to stabilizing affected export markets.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
