Sectors Hit by New U.S. Tariffs to Receive New Government Relief Plan

Pedro Rafael Vilela – Agência Brasil Reporter

Published on July 16, 2026 – 7:42 PM

Brasília, Brazil

About 18% of Bilateral Trade Will Be Affected, Says Minister

The Brazilian federal government announced on Thursday (July 16) that it will reinstate its support program for business sectors affected by the new tariffs imposed by the United States. On Wednesday, the Office of the United States Trade Representative (USTR) confirmed an additional 25% tariff on certain Brazilian products, alleging what it described as unfair trade practices by Brazil.

The Brazilian government rejects the justifications used for the tariffs. The new measures will take effect on July 22.

"From this point forward, the government's priority is to assist and support these sectors that have been impacted by this unfair, improper, and illegal tariff imposed on us," said Márcio Elias Rosa, Brazil's Minister of Development, Industry, Trade and Services (MDIC), during a press conference in Brasília. He was joined by Vice President Geraldo Alckmin and other cabinet members, including Deputy Finance Minister Dario Durigan.

According to Rosa, the sectors most affected include wood products, machinery and electrical equipment, furniture, ceramic products, footwear, and sugar. These industries will have access to working capital credit lines, investment financing, and government assistance to redirect exports to new customers and international markets.

Estimates from the Foreign Trade Secretariat (Secex), part of the MDIC, indicate that approximately 2,400 Brazilian companies will be directly affected by the new tariffs. Together, these companies account for around 18% of Brazilian exports to the United States, representing approximately US$7.4 billion in trade based on 2024 figures.

Economic Impact

Last year, these same sectors exported approximately US$5.5 billion worth of goods to the United States. However, more than half of Brazil's exports to the U.S.—including meat, coffee, oils, and aviation products—were exempted from the latest tariffs by U.S. authorities.

The United States' share of Brazil's exports has declined from 12.1% to 9.4% in 2026, and the Brazilian government will continue promoting a strategy of market diversification for affected products, Rosa said.

Vice President Geraldo Alckmin, who previously served as Minister of Development, Industry, Trade and Services and has been one of Brazil's lead negotiators with the United States, stated that the government is now evaluating how to implement Brazil's Reciprocity Law.

Approved unanimously by the National Congress last year, the law establishes criteria for suspending trade concessions in response to unilateral actions, policies, or practices by another country that negatively affect Brazil's economic competitiveness.

"We have the Reciprocity Law, unanimously approved by Congress, and at the appropriate time the government will know how to implement it," Alckmin said, describing the new tariffs as "unfair" and "unreasonable."

External Interference

Deputy Finance Minister Dario Durigan characterized the U.S. decision as an unjustified act of external interference.

"It is unacceptable, from the government's perspective, to face this kind of external interference—whether political, economic, or in any other form—that seeks to intimidate and pressure Brazil, Brazilian families, businesses, and workers," Durigan said.

According to the minister, all of the U.S. allegations are false and unsupported by factual evidence.

Durigan also stated that the tariffs are not expected to affect Brazil's macroeconomic stability. The government's relief measures will likely involve credit lines totaling less than last year's assistance package because the current list of tariff exemptions is broader.

Pix Payment System

Among the issues repeatedly raised by U.S. officials during trade negotiations over the past year is Pix, Brazil's instant payment system developed by the Central Bank.

During the press conference, Central Bank President Gabriel Galípolo firmly rejected the claim that Pix justified the tariffs, noting that major U.S. credit card companies operating in Brazil have not been harmed.

"It would be like claiming that introducing basic sanitation reduced the income of water truck operators. As far-fetched as that argument may sound, it is not supported by the facts. Since Pix was introduced, the credit card market has actually grown by 150%. What has lost market share are checks and cash, which is entirely beneficial for everyone," Galípolo said.

USTR Investigation

The investigation launched by the USTR about a year ago concluded that certain Brazilian practices allegedly burden or restrict trade involving American farmers, workers, innovators, and exporters.

Among the issues cited by the U.S. government are digital trade practices, electronic payment services, allegedly unfair preferential tariffs, anti-corruption measures, intellectual property protection, ethanol market access, and illegal deforestation.

The United States also raised concerns regarding increased deforestation and illegal timber trade in Brazil.

Brazil's Minister of the Environment and Climate Change, João Paulo Capobianco, dismissed those claims as false and lacking any technical basis. He pointed out that deforestation in the Amazon has fallen by 50% over the past three years.

Edited by: Aline Leal

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https://agenciabrasil.ebc.com.br/economia/noticia/2026-07/setores-atingidos-por-tarifaco-dos-eua-terao-novo-plano-de-socorro