Overview

• The government unveiled the Sovereign Brazil package, offering a 30 billion-real credit lifeline alongside tax postponements, 5 billion reais in SME credits, expanded insurance and procurement incentives.
• The measures take effect at once but will expire in four months unless Congress extends them.
• Exporters warn that a 50 percent U.S. tariff, linked to former president Jair Bolsonaro’s house arrest, could render key sectors like beef exports uneconomic.
• Direct finance talks with the U.S. have stalled and Brazil is pursuing legal challenges, diplomatic protests and new market diversification to protect trade ties.
• President Lula has ruled out reciprocal duties and urged negotiation as congressional leaders demonstrate political unity.