Brazil widens export credit access as tariff pressure grows

New rules for Brazil’s Plano Brasil Soberano, or Brazil Sovereign Plan, came into force on Monday, June 8, widening access to credit for companies exposed to recent shocks in international trade.

The federal government has lowered the minimum export-related revenue threshold required to seek financing under parts of the program from 5 percent to 1 percent. The adjustment, announced last week, is designed to bring more exporters and suppliers into the scheme, including firms that suffered a smaller but still material impact from United States tariffs or from the economic fallout of conflicts in the Middle East.

For Brazilian manufacturers and their suppliers, the measure is a targeted response to a more difficult external environment. Tariffs can quickly erode margins, while conflict-related disruptions can affect contracts, logistics, payments, and demand in key foreign markets. By reducing the eligibility threshold, Brasília is making the program available to companies with more limited export exposure, not only those whose revenue depends heavily on overseas sales.

A lower threshold for affected exporters

The change applies to companies in Groups 1 and 3 of the Brazil Sovereign Plan.

Group 1 covers exporters of industrial goods and suppliers affected by tariffs imposed by the United States. The sectors named for this group are steel, copper, aluminum, automotive, and furniture.

Group 3 covers exporters of industrial goods and suppliers operating in Middle Eastern countries affected by conflicts in the region. These companies may also seek financing if they meet the new 1 percent benchmark.

Under the updated rule, eligible businesses in those groups must show that exports represented at least 1 percent of gross revenue during the relevant reference period. Previously, the minimum was 5 percent. The practical effect is to include firms for which exports are not the main business line, but where tariff or geopolitical disruption has still created cash flow pressure or investment needs.

The reference periods differ by group. For Group 1, the comparison uses the 12-month period from July 1, 2024, to June 30, 2025. For Group 3, companies must use the 12 months from January 1, 2025, to December 31, 2025.

Which sectors remain covered

The ordinance does not alter the rules for the group of sectors classified as strategic for the Brazilian economy. Those sectors include textiles, chemicals, pharmaceuticals, automotive, machinery and equipment, electronics and information technology, rubber and plastics, transportation equipment, and critical minerals.

The inclusion of industrial and strategic sectors reflects a broader policy concern in Brazil. The government is trying to preserve export capacity, industrial employment, and supplier networks at a time when trade barriers and regional conflicts are complicating planning for companies with international exposure.

The automotive sector appears in both the tariff-affected list and the strategic sectors list, underscoring its importance in Brazil’s manufacturing base and export chain. Metals such as steel, copper, and aluminum are also highly sensitive to tariff decisions because they sit near the beginning of many industrial supply chains, meaning changes in cost or market access can ripple through downstream producers.

For smaller suppliers, the new 1 percent threshold may be especially relevant. A component maker, packaging supplier, or specialized industrial services company may not export large volumes directly, but can still be exposed if its clients depend on markets affected by tariffs or instability abroad.

What the credit can finance, and why it matters

The Brazil Sovereign Plan offers financing for several business needs. Companies may use the credit lines for working capital, export production, machinery and equipment purchases, expansion of production capacity, technological innovation, and the adaptation of products, services, and processes.

Those categories matter because the impact of trade disruption is rarely limited to lost sales. A company may need working capital to bridge delayed payments, invest in new equipment to redirect production, adjust a product to meet a different market’s requirements, or expand capacity in a line less exposed to tariffs. The program’s design gives firms room to address both immediate liquidity problems and longer-term competitiveness.

For investors and international companies watching Brazil, the rule change is another sign that trade policy and industrial policy are increasingly intertwined. Credit availability, sector classification, tariff exposure, and geopolitical risk are now part of the same operating map for exporters and suppliers.

Brazil Business Club helps investors, exporters, and companies entering Brazil make sense of these shifts. If your business is assessing Brazilian supply chains, export opportunities, industrial partnerships, or financing conditions, connect with the club to explore the market with local insight and a practical network.