Government Demands Job Preservation and Releases R$ 30 Billion in Credit for Exporters Affected by 50% U.S. Tariff

Written by Maria Heloisa Barbosa Borges

Published on 13/08/2025 at 08:47

Updated on 13/08/2025 at 08:48

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Government Requires Temporary Job Maintenance for Companies Benefiting from Aid. New Provisional Measure Conditions Access to Emergency Credit on Job Preservation or Expansion in Response to Tariff Hike Imposed by the USA

The federal government announced that companies applying for credit under the special conditions created to face the tariff hike imposed by the United States will have to commit to temporary job maintenance. This requirement will be included in a contractual clause in the financing of the contingency plan to be formalized by a provisional measure (MP) to be signed by President Luiz Inácio Lula da Silva on Wednesday.

The measure is a direct response to the additional tariffs of 40% imposed by the president of the United States, Donald Trump, on various Brazilian products, raising the total rate to 50%. The impact especially affects sectors such as meat, coffee, fruits, seafood, footwear, and textiles. To mitigate the economic effects, the government will allocate R$ 30 billion in financing and will reformulate the Export Guarantee Fund (FGE), including new support mechanisms for exporters.

What Does Temporary Job Maintenance Entail

The Ministry of Management and the Ministry of Finance confirmed that all benefiting companies must maintain or expand their workforce for the duration specified in the contract. The idea is to prevent public resources from being used merely to alleviate cash flow without ensuring social countermeasures.

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Emergency Credit for Most Affected Sectors

The package provides for R$ 30 billion in emergency credit, prioritizing sectors harmed by the 50% tariffs from the USA. This financing can be used for:

Working capital to maintain operations amidst the drop in exports.
Adaptation of productive activities aimed at reducing dependence on the North American market.
Technological investments to open new markets.
Strengthening of productive chains with a focus on export.

In addition, there will be a government purchase program for products that have lost market share in the USA, such as fruits, honey, and seafood, to avoid waste and economic losses in the sector.

Reformulation of the Export Guarantee Fund

Currently, the FGE acts as export credit insurance, guaranteeing the payment of debts from foreign importers. With the MP, the fund will also begin to directly provide financing lines for exporters and suppliers impacted by the tariff hike.

The goal is to broaden the reach of operations, facilitate access to credit, and prevent the collapse of production chains dependent on the North American market. The reformulation will also allow for investments to adapt products and processes to new markets.

Context of the Tariff Hike and Economic Impacts

The tariff hike came into effect on August 6, affecting products that represent a significant portion of Brazilian exports to the USA. According to analysts, the US measure is likely to exert internal pressure on inflation and employment in the affected sectors.

The Vice President and Minister of Development, Industry and Commerce, Geraldo Alckmin, has been leading negotiations with US authorities to reverse or mitigate the tariffs. Meanwhile, the strategy is to offer alternatives for companies to maintain production and jobs in Brazil.

Do you think the requirement for temporary job maintenance is enough to protect workers against the tariff hike? Or do you believe other measures should be taken? Leave your opinion in the comments; we want to hear from those who live this reality firsthand.

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Government Demands Job Preservation and Releases R$ 30 Billion in Credit for Exporters Affected by 50% U.S. Tariff

Government Requires Temporary Job Maintenance for Companies Benefiting from Aid. New Provisional Measure Conditions Access to Emergency Credit on Job Preservation or Expansion in Response to Tariff Hike Imposed by the USA

What Does Temporary Job Maintenance Entail

Emergency Credit for Most Affected Sectors

Reformulation of the Export Guarantee Fund

Context of the Tariff Hike and Economic Impacts

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Government Demands Job Preservation and Releases R$ 30 Billion in Credit for Exporters Affected by 50% U.S. Tariff

Government Requires Temporary Job Maintenance for Companies Benefiting from Aid. New Provisional Measure Conditions Access to Emergency Credit on Job Preservation or Expansion in Response to Tariff Hike Imposed by the USA

What Does Temporary Job Maintenance Entail

Emergency Credit for Most Affected Sectors

Reformulation of the Export Guarantee Fund

Context of the Tariff Hike and Economic Impacts

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

Under nearly 2 kilometers of ice in Antarctica, scientists have discovered an ancient landscape sculpted by rivers up to 60 million years ago, the size of Wales, preserved as a time capsule that could help predict the advance of ice towards the ocean.

She started by collecting oyster shells from restaurants and today she has already accumulated more than 10 tons to restore reefs, recover coastal habitats, and demonstrate how a common waste can become a tool for ocean conservation.

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