Brazil weighs company-by-company relief plan to counter U.S. tariffs

In a parallel effort, Vice President and Minister of Development, Industry, Trade and Services (MDIC) Geraldo Alckmin has hinted at possible avenues for bilateral talks, including regulation of big tech companies, access to critical minerals, and data center policy.

Valor has learned that he details of the plan were still being defined on Thursday (7), with calculations underway to assess the fiscal impact. There was no decision yet on the amount of credit to be offered or whether the Reintegra program—which grants tax credits to exporters—would be expanded to cover affected companies.

The review is delayed as the government examines each exporter individually to decide which support measures to implement. The MDIC prepared a detailed report on the tariff’s impact by company, which was under review at the Finance Ministry.

For now, expanding Reintegra remains under consideration. The program currently grants 0.1% credit for medium and large companies and 3% for small and micro enterprises. Industry representatives are lobbying to set the rate at 3% for all exporters. The issue was raised during a meeting between Mr. Alckmin and Haroldo Ferreira, president of the Brazilian Footwear Industry Association (ABICALÇADOS), who stressed the program’s “importance for companies selling to the U.S. market.”

Another businessperson said that Reintegra was well on the way to being included in the initial measures. However, there was uncertainty about the criteria for choosing the companies that would benefit.

Another measure under discussion is easing drawback rules, which suspend taxes on imported components used in products bound for export. Officials are weighing longer deadlines for companies to fulfill their export commitments.

Mr. Alckmin noted that the need for support varies even within sectors. In fisheries, for example, tilapia is sold domestically, while tuna is exported—making the latter more vulnerable to the new tariffs. Measures will therefore target firms with greater export exposure to the U.S.

The vice president said the government is acting on two fronts: implementing a contingency plan to protect jobs and production, and negotiating to exclude as many products as possible from the tariff list. Currently, about 38% of Brazilian exports to the U.S. are subject to the 50% duty.

Mr. Alckmin also met with U.S. chargé d’affaires Gabriel Escobar, reiterating Brazil’s opposition to the tariff hike and offering dialogue on non-tariff issues such as big tech regulation, critical minerals, and data centers. He argued that the measure would harm the U.S. by raising consumer prices, disrupting supply chains, and creating legal uncertainty. Mr. Escobar also visited Congress on Thursday.

Private-sector engagement is part of the strategy. On Wednesday, Mr. Alckmin met with Abrão Neto, head of the American Chamber of Commerce for Brazil (Amcham Brasil), which will work with the Brazilian Trade and Investment Promotion Agency (ApexBrasil) to intensify outreach in Washington.

Measures under consideration include credit lines, government purchases of food for school lunch and prison programs, job support initiatives, and a possible Reintegra expansion. Behind the scenes, officials are careful to avoid measures that would worsen public finances, particularly the primary balance—revenues minus expenditures excluding interest payments—which is the key fiscal target.

While credit provision is seen as less risky, high subsidies are a concern. The goal is to prevent any perception that the crisis is a pretext for higher spending in a pre-election year. Measures with budgetary impact could bypass the fiscal target but might increase gross public debt.