Brazil’s state development bank, BNDES, on Friday announced a 10 billion reais ($1.85 billion) credit line to help companies affected by steep US tariffs. The facility is divided into funding for general operating expenses and exploring new export markets, complementing a 30 billion reais package unveiled earlier this month by the Brazilian government.According to BNDES, companies of all sizes with products subject to any level of US levies can access the credit line, reported Reuters.The move follows the government’s broader 30 billion reais ($5.5 billion) support plan, aimed at exporters impacted by the 50% tariffs imposed by US president Donald Trump on several Brazilian goods.
‘Sovereign Brazil’
Other measures in the government’s plan, dubbed “Sovereign Brazil,” include postponing tax charges, providing 5 billion reais ($930,000) in tax credits to small and medium-sized enterprises through 2026, and expanding insurance coverage for cancelled orders. The program also encourages public procurement of goods that cannot be exported to the US, providing an alternative market for affected companies.
Exporters get BNDES support
Brazilian president Luiz Inacio Lula da Silva emphasised the need for calm and innovation during economic crises. “We cannot be scared, nervous and anxious when there is a crisis. A crisis is for us to create new things,” he said. “In this case, what is unpleasant is that the reasons given to impose sanctions against Brazil do not exist.”The US tariffs have been linked by Trump to the judicial situation of former president Jair Bolsonaro, who is currently under house arrest, adding a political dimension to the trade dispute.The combined credit lines from BNDES and the federal government aim to provide Brazilian companies with liquidity, flexibility, and opportunities to explore alternative markets, helping them offset the impact of US tariffs.
