Government exempts food from bidding for producers affected by Trump's tariff hike

The government of President Luiz Inácio Lula da Silva (Workers' Party) has authorized the direct purchase, without the need for bidding, of Brazilian food products that lost market share after the 50% tariff hike imposed by US President Donald Trump. The measure stipulates that the products will be allocated to public schools and to build up national stocks.

The foods covered by the measure include açaí, coconut water, cashew and Brazil nuts, honey, mango, fish, and grapes. The list, according to the government, may be expanded depending on the need and impact on other export sectors.

The ordinance signed by Ministers Paulo Teixeira, of Agrarian Development, and Carlos Fávaro, of Agriculture, establishes “exceptional emergency procedures related to public purchases of foodstuffs, exclusively for producers and exporting legal entities affected by additional import tariffs applied by the United States of America” ( see in full ).

The government's purchase of food without a bidding process, however, is conditional on proving losses from the increase in export tariffs in a document called a Declaration of Loss (DP). This measure is part of the "Sovereign Brazil Plan," created to support production chains affected by the surcharges.

"Several products can now be traded with the Federal Government, states, and municipalities, minimizing the impact of the tariff hike. We are also monitoring whether other products need to be added to this list," Fávaro stated.

In addition to releasing public procurement, the government launched an emergency credit package of up to R$40 billion for affected sectors. Of this amount, R$30 billion will come from the Export Guarantee Fund (FGE) and R$10 billion will be made available by the BNDES, in lines earmarked for working capital, machinery acquisition, and opening new markets.

Vice President Geraldo Alckmin , who is also Minister of Development, Industry, and Commerce (MDIC), visited the National Congress last week to request expedited processing of 18 bills related to foreign trade. The list includes proposals on credit, exemptions, export facilitation, and international agreements.

According to him, approval of the measures is essential to provide breathing space for exporters affected by the tariffs imposed by the United States government. "The faster the projects are approved, the better," he added.

The government's aid to Brazilian producers comes at a time of stagnation in negotiations between the highest levels of the governments of both countries.

More recently, Finance Minister Fernando Haddad had a meeting with US Treasury Secretary Scott Bessent canceled . Bessent, a few days later, appeared in a photo with Federal Deputy Eduardo Bolsonaro (PL-SP) and journalist Paulo Figueiredo.

And Alckmin himself also complained that he has been unable to speak to his US counterpart, Commerce Secretary Howard Lutnick, for a few weeks , and that negotiations are only taking place at a technical level.