Brazilian exporters get lifeline as Lula signs $1.1B credit package to bypass new US tariffs

Brazilian President Luiz Inácio Lula da Silva has signed an emergency credit package to protect the country’s exporters from new 25% tariffs imposed by the United States. The financing plan, worth $1.1 billion, aims to help manufacturers and exporters shift their sales to alternative markets in Asia and Europe. The move comes as trade tensions between Brazil and Washington escalate. The US tariffs, announced last week, target key Brazilian exports including steel and agricultural products. Lula’s government says the credit will cover production costs and logistics for companies seeking new buyers outside the American market. The package includes low-interest loans and export guarantees. Officials say the goal is to prevent job losses and maintain Brazil’s industrial output while trade negotiations continue. The plan is expected to benefit thousands of small and medium-sized manufacturers. Analysts say the strategy may ease short-term pressure but does not resolve the underlying dispute. Brazil is now seeking talks with the US to reduce or remove the tariffs.