The Brazilian government has announced measures to mitigate the effects of the new 50% tariffs imposed by the United States on Brazilian products, focusing on perishable fruit exports. The actions form part of the "Brazil Sovereign" plan, presented by President Luiz Inácio Lula da Silva on August 13, and are set out in a provisional decree introducing emergency support for affected producers.
Acting Minister of Agrarian Development and Family Farming (MDA) Fernanda Machiaveli said the government will purchase perishable products that were originally intended for the US market. "This will allow these perishable products, originally destined for export, to be absorbed by our domestic market and feed our children through school meals, as well as supply other institutional purchases," she said.
Machiaveli noted that many family farmers are part of export supply chains, including producers of fruit and açaí, and that the measures will help small-scale agriculture withstand the current situation. The plan also includes the resumption of the government's stockpiling program to support cooperatives that had planned exports. This measure will provide working capital, allow for storage, and give cooperatives time to redirect products to other domestic or international markets.
A further strategy is to diversify markets for products currently reliant on US buyers. "Our açaí fruits are heavily directed to the United States, and now we are working to secure agreements with other buyers. Minister Paulo Teixeira is in Japan today doing exactly that. In this way, we will protect family farming," Machiaveli said.
The acting minister described the US decision as "unfair" and acknowledged its impact on Brazil's economy but stated that domestic measures would help stabilise prices and redirect produce to the Brazilian market. The government's economic team will release details on the criteria for purchasing fruit from exporters affected by the tariff increase in the coming days.
Source: BdF