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Brazil allocates $3.65B to offset Trump tariffs

Brazil's President Luiz Inácio Lula da Silva announced that the country will seek alternative markets for its products following the United States' imposition of an additional 25% customs duty on Brazilian imports, which impacted exports worth $5.5 billion in 2025. The government has adopted a support plan that includes funding of 18.5 billion Brazilian reais (approximately $3.65 billion) to help affected companies diversify their markets and increase their resilience. The impacted sectors include timber, furniture, machinery, and electrical goods, while sectors such as meat and coffee will remain protected from tariffs. Brazil emphasized that it will continue negotiations but does not rule out taking countermeasures under reciprocal trade laws if the U.S. maintains these restrictions, and will revisit the dispute through the World Trade Organization.

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