Brazil unveils US $3.7 billion credit support for footwear and export industries hit by U.S. tariffs

The Brazilian government has announced 18.5 billion reais (US$3.66 billion) in financing to support companies affected by newly imposed U.S. tariffs, with the country's footwear industry among the key beneficiaries of the relief package.

According to a government statement, 13.5 billion reais will be funded by Brazil's Treasury, while the remaining 5 billion reais will be provided by the state-run development bank BNDES. The financing plan requires approval from Congress before implementation.

The credit lines are primarily aimed at industries impacted by the 25% U.S. tariffs that took effect this week, including footwear, steel and aluminum manufacturers. Companies will be able to access funding for working capital, machinery and equipment purchases, business investments, and expansion into new export markets.

The latest initiative represents the third phase of Brazil's support program introduced last year in response to U.S. trade measures. The program combines subsidized financing with incentives for exporters to diversify their international markets.

The United States imposed the 25% tariff on a range of Brazilian imports, citing concerns over trade practices related to electronic payment services, ethanol market access and illegal deforestation. The Brazilian government has rejected the move, arguing that the measures are unjustified given Brazil's trade deficit with the United States.

Brazil is also facing a separate U.S. investigation under Section 301 concerning allegations of forced labor. If additional duties are imposed following the investigation, tariffs on certain Brazilian products could rise to 37.5%.

The financial support package is expected to help Brazilian footwear manufacturers and other export-oriented industries maintain competitiveness while navigating heightened trade barriers in the U.S. market.