When Washington abruptly lifted duties on most Brazilian imports to an overall 50 percent starting August 6, Brasília moved just as quickly.
Brazil’s state development bank, BNDES, approved R$1.6 billion ($302 million) in accelerated credit for 47 companies, aiming to keep factories running and orders alive while exporters redirect sales away from the United States.
The trigger was a July 30 executive order that slapped higher tariffs on roughly 3,800 Brazilian items, while carving out close to 700 exceptions, including civil aircraft and orange-juice products.
The policy upended contracts priced on pre-tariff terms and forced a scramble for alternative buyers. BNDES’s first wave of financing comes through its Giro Diversificação line—essentially fast working capital to fund new routes to market.
Early allocations target sectors with heavy exposure to U.S. demand and commodity swings: coffee received R$108.9 million ($21 million); sugar, R$220.0 million ($42 million); electrical equipment, R$191.1 million ($36 million); assorted food products, R$249.7 million ($47 million); and household goods, R$79.5 million ($15 million).
The initial redirection includes Switzerland, the United Kingdom, Canada, France, Argentina, Bolivia, Ecuador, Chile, Paraguay, the Dominican Republic, and Uruguay. Another 66 operations worth R$2.0 billion ($377 million) are under analysis.
Brazil Deploys BNDES Credit to Buffer Tariff Shock
Behind the story is a bigger strategy. The government’s Plano Brasil Soberano tasks BNDES with cushioning the tariff shock and accelerating diversification so exporters are less dependent on a single market.
Beyond the immediate loans, authorities have flagged capacity for larger support—potentially up to R$40 billion ($7.55 billion)—combining guarantees and bank resources to smooth cash flows as companies reprice, retool, and re-negotiate.
“The speed in approving projects so companies can seek new markets reflects our commitment to ensure no viable firm is left without support,” BNDES president Aloizio Mercadante said.
Why this matters—at home and abroad: For Brazilian firms, the credit is a bridge that buys time to adapt without mass layoffs or canceled shipments.
For global buyers and investors, it signals that Brazilian supply will be rerouted rather than withdrawn, shifting logistics toward Europe and Latin America and reshaping prices and margins through 2026.
The outcome will test whether targeted state-backed finance can blunt a trade shock without dulling competitiveness.