Lula Government Estimates U.S. Tariffs Will Affect 18% of Exports, Announces Aid for Businesses

President Luiz Inácio Lula da Silva's government announced on Thursday (July 16) that it will expand the Brasil Soberano program, which provides credit lines to businesses affected by U.S. tariffs. The move comes in response to the additional 25% tariff announced by the Donald Trump administration, which is scheduled to take effect on Wednesday (July 22).

According to the Brazilian government, the tariffs affect 18% of Brazil's exports to the United States, or about US$7.4 billion, based on 2024 data. Other institutions have produced different estimates. The National Confederation of Industry (CNI) says the new tariffs put 26% of exports at risk, while consultancy MB Associados estimates the impact at US$9.51 billion, or 25.2% of exports, based on 2025 figures.

Finance Ministry executive secretary Dario Durigan said the government will strengthen the Brasil Soberano program and that ministers will present President Lula with the option of invoking Brazil's Reciprocity Law, with the final decision resting with the president. He did not disclose the size of the package but said it is expected to be smaller than previous versions.

Vice President Geraldo Alckmin described the U.S. measure as "unfair and unjustified" and said that "the government, at the appropriate time, will know how to implement" the Reciprocity Law. Ministers present at the announcement, including Foreign Minister Mauro Vieira and Industry Minister Márcio Elias Rosa, rejected U.S. allegations involving corruption, deforestation and the Pix instant payment system, arguing that Brazil had negotiated in good faith through more than 30 meetings.

U.S. Secretary of State Marco Rubio blamed Lula for the new sanctions, saying the Brazilian president had "put his own ego ahead of" reaching an agreement.

Read the article in the original language

News from Brazil

Receive in your email inbox a summary of the day