Novo Desenrola, a program unveiled by the Brazilian government aimed at renegotiating individual debts, has benefited over 6 million people and families in its first few days, Finance Minister Dario Durigan reported.

Of this total, about 4 million people have had their debts cleared.

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“These are people with small debts of up to BRL 100,” he explained on Tuesday (Jun. 9) during an interview with the news portal UOL.

The program was created with the goal of reducing delinquency and facilitating credit recovery. The initiative primarily benefits low- and middle-income Brazilians, especially those earning up to five minimum wages per month (BRL 8,105) who have overdue bank debts.

To this end, more favorable terms than those available on the market are offered for paying off or paying debts in monthly installments.

Among its main features are discounts of up to 90 percent on the debt amount and reduced interest rates (limited to about 1.99 percent per month). Payment plans can extend up to 48 months.

Interest rates

During the interview, Minister Durigan said the high interest rates charged in Brazil have indeed been detrimental to Brazilians. However, he added, through this program, the government has been helping the people cope with this situation.

“Data from this morning show that more than 6 million people and families have benefited from Novo Desenrola in the program’s first few days,” said the minister, noting that this is a national initiative scheduled to end on August 2.

According to Durigan, “about 4 million people had their credit ratings downgraded due to small debts of up to BRL 100; and 1.1 million people have paid off their debts in a lump sum, with average discounts exceeding 80 percent.”

“These people have cleared their credit records and are once again eligible to borrow,” he pointed out.

The finance minister denied that interest rates in Brazil are high because the government spends too much.

“They stem from imbalances caused mostly by the war [between the US and Israel against Iran]. Therefore, as long as this scenario persists, we are adopting [price] subsidy measures, such as the one for gas,” he added, reaffirming that, from a fiscal standpoint, nothing has changed.

The US government announced that it may impose a new punitive 25 percent tariff on Brazilian imports, alleging that certain practices in Brazil are unfair.

Among the practices cited are e-commerce and illegal deforestation. Some products, including beef, coffee, rare earth metals, other metals, and aircraft parts, are exempt from the new tariff, which may take effect on July 15.

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The measure is based on an investigation launched in July 2025 by the Office of the United States Trade Representative (USTR), which concluded that Brazilian policies and practices are “unreasonable” and “burden or restrict” US trade.

The investigation’s final report calls for the imposition of “tariffs or other restrictions on imports of Brazilian products.”

“Based on this possibility, the US Trade Representative proposed the application of 25 percent tariffs on all goods from Brazil,” the document reads.

The additional tariffs, however, include exceptions for products that could cause “disruptions” across the economy if subjected to the new duties, as well as “certain products that cannot be grown or produced in sufficient quantities in the United States, nor obtained from other sources.”

Among the exceptions are fruits and nuts, crude oil and its derivatives, pharmaceutical compounds, organic chemicals, fertilizers, beef, coffee, rare earth minerals, certain metals and ores, and Brazilian aircraft and aircraft parts.

US Trade Act

The USTR’s decision, announced on Monday evening (Jun. 1), is based on provisions of Section 301 of the US Trade Act of 1974.

The investigation assessed practices in the areas of digital commerce and electronic payment services, such as the Pix instant payment system; preferential tariff policies; intellectual property protection; anti-corruption measures; access to the ethanol market; and illegal deforestation.

The USTR asserts that, in these areas, US companies and exports are being harmed. As a result, the US government has opened a public consultation on possible corrective measures.

The process includes a comment period ending July 1 and a public hearing on July 6, while negotiations with the Brazilian government continue. The legal deadline for adopting the new tariff is July 15, 2026.

The investigation has already heard testimony from more than 30 witnesses and received nearly 300 submissions.

US Ambassador Jamieson Greer said the investigation was launched at the request of President Donald Trump, who cited longstanding and widespread US concerns about certain Brazilian trade policies and practices.

“Over the past year, President Trump and I have had several constructive meetings with President Luiz Inácio Lula da Silva and his cabinet. These meetings have intensified in recent weeks,” Greer said.

“However, we continue to have substantial differences regarding the resolution of the issues identified in this investigation. I look forward to continuing the dialogue with the Brazilian government before the July 15, 2026 legal deadline for taking corrective measures,” he added.

On Tuesday (Jun. 2), China issued a statement supporting Brazil’s sovereignty, independence, and autonomy. According to the Chinese State Council, the country is willing to expand the cooperation it has maintained with Brazil and other Latin American countries

The Chinese statement in support of Brazil was made in Beijing during the China–Brazil Comprehensive Strategic Dialogue.

The ties between the two countries were reaffirmed amid threats from the US to impose a 25 percent tariff on Brazilian products not considered strategic for the US market.

Cooperation and sovereignty

According to Chinese Foreign Minister Wang Yi, China has always been a “reliable friend of the countries of Latin America and the Caribbean” and is “ready to work with countries in the region, including Brazil, to further deepen and expand overall cooperation between China and Latin America.”

He added that his country “supports Brazil in defending its national sovereignty, maintaining its independence and autonomy, and pursuing greater development.”

Joint efforts

Minister Wang called for Brazil and China to move forward in building a China–Brazil community in order to “jointly address various external challenges and generate greater synergy for the modernization processes of both countries and for the unity and strengthening of the countries of the Global South.”

He went on to say that both sides should advance exchanges and cooperation in areas such as culture, education, tourism, sports, subnational regions, youth, and the media.

Wang reiterated China’s position on strengthening communication and coordination within multilateral mechanisms, including the United Nations and BRICS. He also advocated for the implementation of global initiatives to promote the development of a “fairer and more equitable global governance system.”

Foreign minister

Brazilian Foreign Minister Mauro Vieira is in Beijing attending the assembly. He stated that Brazil shares China’s interest in expanding practical cooperation between the two countries.

He also said Brazil will continue to adhere to the “One China” principle. The term refers to China’s goal of reclaiming Taiwan, an island it considers a “rebel province.”
 

The International Monetary Fund (IMF) released a statement on Monday (Jun. 1) praising the “remarkable resilience” of the Brazilian economy in the face of the “multiple shocks” arising from the external and domestic pressures facing the country.

According to the organization, Brazil is “relatively protected from global oil price increases stemming from the war in the Middle East.”

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This assessment takes into account the country’s status as an oil exporter and the large share of renewable energy in its electricity generation.

The statements were released following the conclusion of the IMF’s annual mission to Brazil on Friday (May 29).

According to mission chief Daniel Leigh, the indicators “point to an economic recovery in early 2026,” which should lead to a “gradual strengthening of growth to around 2.5 percent in the medium term.”

Risks

Despite the positive assessment, the IMF warns of risks in the global environment.

“The risks to the growth outlook are tilted to the downside, including worsening geopolitical tensions and tightening financial conditions,” Leigh warned.

Nevertheless, the institution acknowledges that the country’s resilience rests on important pillars. “Brazil’s strong policy frameworks, robust financial system, adequate reserves, and flexible exchange rate regime continue to underpin resilience.”

The IMF considers the recent interest rate cut appropriate but urges caution in light of inflationary pressures. It also recommends maintaining and strengthening fiscal efforts to ensure debt sustainability and create room for investment.

According to the organization, structural reforms and the environmental agenda are expected to drive stronger and more inclusive growth in the medium term.

Finance

Finance Minister Dario Durigan commented on the IMF’s recognition of the Brazilian economy’s resilience and reaffirmed that the government’s main goal is to achieve sustainable annual growth of at least 4 percent.

According to him, this outcome will be driven by a significant increase in productivity.

Durigan advocated continuing the government’s efforts to improve state efficiency, “backed by political leadership capable of leading serious discussions with society on Brazil’s economic challenges and advancing a fair and sustainable growth agenda.”

According to the minister, dialogue with the IMF helps support macroeconomic management efforts aimed at balancing debt and controlling inflation, while strengthening social programs and environmental protection.

He reaffirmed the government’s fiscal commitment, even in the face of external shocks, as a way to ensure that measures to mitigate the impact of the crisis remain fiscally neutral.

Brazilian President Luiz Inácio Lula da Silva stated that Brazil could be “much better off” if the people had not been influenced by lies told during the election period by politicians uncommitted to the poor.

The statement was made during the delivery ceremony of 576 affordable housing units in Manaus, Amazonas state. With an investment of BRL 92.1 million, the project is likely to benefit 2 thousand people.

According to Lula, people like those in the audience – who have benefited from the government’s affordable housing program – are often treated as “invisible” by most politicians.

Maturity and seriousness

The president asked voters to show “maturity and seriousness” in distinguishing truth from lies when deciding the future of Brazil, given the spread of false information using AI on social media.

“Brazil could already be doing much better as a country. If that’s not the case, it’s because every now and then we elect someone who has no commitment to anything. These are people who hold the office of president, but have never spoken to you, never seen you, and don’t care about the poor,” he said.

In the view of these people, he went on to argue, the poor only matter during election season.

“You should know that, when it comes to deciding the fate of this country, this city, this state, you have to act with great maturity and seriousness. We can’t keep believing the lies we’re fed 24 hours a day on our phones,” he argued.

“Now they’ve come up with something called artificial intelligence, which is great for health care, education, science, and technology. It’s great for so many things. But I don’t think it’s any good for elections, because artificial intelligence can spread a lot of lies through cell phones. So we’re going to have to be really responsible, because this country needs serious people,” he added.