26 Aug 2025, 01:46
Brazil Announces Purchase of Products Affected by American Tariffs
- Brazil will purchase products that have suffered due to U.S. tariffs.
- The government is establishing new rules for purchasing products without tenders.
- The "Sovereign Brazil" program includes financial support for local manufacturers.
This was reported by ABC News, Global Times.
On Monday, August 25, 2025, the Brazilian government announced its intention to purchase a range of products that fell under a 50% increase in U.S. tariffs, including items such as coconut water, mangoes, and Brazilian nuts. These products will be purchased at an "adequate" price for use in public schools and institutional supplies across the country.
The Minister of Agricultural Development, Paulo Teixeira, noted that coffee and dairy products, which have also been affected by tariffs, will not be supplied, except where there is demand in other markets. Brazil cannot pay the price set by exporters in dollars, but will find a corresponding price for other products.
At the beginning of August, the "Sovereign Brazil" program was also presented, which includes a budget of 30 billion reais (approximately 5.5 billion dollars) for supporting local companies that have suffered from U.S. tariffs. The government hopes that these measures will help preserve jobs in the regions that depend on exports.
The government also issued a decree allowing state agencies to purchase products without conducting tenders, which aims to create opportunities for products that have lost access to the American market. This decree specifies criteria for businesses that are usually disadvantaged due to tariffs.
Brazil estimates that 35.9% of the products exported to the U.S. have been affected by the new tariffs, which account for nearly 4% of the total export volume of the country.
Tags: Politics/Economy