Brazil Widens Tariff Relief Plan, Lowering Threshold to 1% and Adding Suppliers

Overview

• Portaria 21 reduces the minimum export impact needed for access to the Plano Brasil Soberano from 5% to 1% for the July 2024 to June 2025 window.
• Supplier firms become eligible if they supplied goods in that period to an exporter whose U.S.-tariff-affected sales equal or exceed 5% of its total revenue.
• The plan offers up to R$30 billion in credit operated by BNDES and backed by the Export Guarantee Fund under Provisional Measure 1.309/2025, which lapses in December without congressional approval.
• Implementation to early November totals 517 approved operations worth R$7.1 billion, with R$4.0 billion for market diversification and R$3.1 billion for working capital.
• Manufacturing accounts for R$5.9 billion of the approved credit, and negotiations continue after Brazil sent a proposal on November 4 and Mauro Vieira met Marco Rubio at the G7 in Niagara.