Brasília, August 4, 2025 — In response to steep tariffs imposed by the United States, Brazil has opted for economic cushioning over retaliation. Instead of escalating trade tensions, the government is preparing a relief plan to protect key domestic industries, sources close to the matter reveal.

The U.S. tariffs—set to begin August 6—will increase duties on select Brazilian goods by 40%, pushing total tariffs near 50%. The executive order from President Donald Trump cites national security and corporate censorship concerns linked to Brazil’s tech and media regulations.

🔧 Brazil’s Alternative Strategy

Rather than countering with tariffs of its own, Brazil’s plan includes:

• Public credit assistance targeting export-driven sectors
• A temporary freeze on royalty payments for pharmaceuticals and entertainment licensing
• Postponement of digital tax proposals affecting major U.S. tech firms

This approach aims to uphold trade stability while providing breathing room for Brazilian companies heavily tied to U.S. markets.

🛑 Selective Pressure & Long-Term Options

Notably, the U.S. tariff order spares industries like aviation, mining, and energy—suggesting a tailored economic squeeze. Brazil is exploring longer-term moves, such as a formal WTO complaint and potential shifts in regional trade partnerships. For now, officials have held back on any direct countermeasures.

📈 Looking Ahead

With the relief package expected to launch later this week, economists caution that sustained tariff pressures could hurt Brazil’s global competitiveness and strain diplomatic ties. Officials hope their measured approach will allow time to reassess and stabilize the economic landscape in the face of growing international challenges.