Ankara: President Luiz Inacio Lula da Silva signed an executive decree on Wednesday initiating an 18.5 billion reais ($3.65 billion) emergency credit line designed to protect Brazilian companies from a newly imposed 25% tariff by the US. Speaking at the Planalto Palace in Brasilia, alongside several Cabinet ministers, Lula emphasized that this stimulus package demonstrates Brazil's resilience against the latest trade penalties from Washington. According to Anadolu Agency, the initiative, named 'Sovereign Brazil III,' is the third major relief package by the government aimed at aiding exporters who are navigating ongoing trade disputes with the US. The funding for the measure is comprised of 13.5 billion reais ($2.66 billion) sourced from unallocated Treasury funds earmarked during a 2025 credit rollout, with the remainder provided by BNDES, Brazil's state development bank. The subsidized loans are available to manufacturers affected by the new 25% levy, in addition to steel producers impacted by previous US duties. The tariffs originate from an investigation by the Office of the United States Trade Representative (USTR), which concluded that several of Brazil's commercial and digital policies unfairly burdened US commerce. Official Brazilian estimates suggest these duties will impact approximately 18% of the country's exports to the US, though domestic trade groups warn the effect could extend to nearly a third of all US-bound shipments. The tariffs primarily target industrial machinery, sugar, ethanol, timber, and footwear. However, the US government has exempted around 2,100 product categories, sparing critical Brazilian commodities such as beef, coffee, crude oil, and commercial aircraft components. While Lula declared Brazil's openness to diplomatic negotiations with Washington, he indicated that the country would actively seek alternative trade partners across Asia, Europe, and the Middle East to accommodate redirected exports. Lula noted that despite the US government's unexpected decision to impose tari ffs without prior consultation, Brazil stands resilient. The diplomatic conflict may escalate in the coming weeks, as Brazil is among several nations under scrutiny in a separate US trade investigation into alleged supply chain labor violations, which could lead to an additional 12.5% tariff.