In brief
The government published on August 25 Provisional Measure 1,386/2026, extending by up to one year the drawback-suspension regime's tax deadlines for exporters hit by US tariffsTrade tariffsThemeMeasures that change product entry costs and competitiveness in international trade.Open in the Market Map ↗, per the Senate and Chamber news agencies. The regime suspends import duty, IPI, PIS/Cofins and AFRMM on inputs imported for exported production.
The extension covers concession acts expiring between July 22 and December 31, 2026 that had already been extended and still await final review. In practice, it spares exporters from immediately paying suspended taxes where US tariffsTrade tariffsThemeMeasures that change product entry costs and competitiveness in international trade.Open in the Market Map ↗ frustrated the exports that justified the suspension.
The MP has immediate force of law and goes to Congress for review. It is another piece of the tariff response, alongside the Brasil Soberano credit line regulated the day before — a distinct act, still without full confirmation by two independent groups.
What we know
04Verified fact · material
MP 1,386/2026, published August 25, extends by up to one year the drawback-suspension regime's tax deadlines — import duty, IPI, PIS/Cofins and AFRMM — for exporters hit by US tariffsTrade tariffsThemeMeasures that change product entry costs and competitiveness in international trade.Open in the Market Map ↗.
The extension avoids immediate collection of suspended taxes from exporters whose US sales were frozen by tariffsTrade tariffsThemeMeasures that change product entry costs and competitiveness in international trade.Open in the Market Map ↗.
Context
The MP has immediate force of law and goes to Congress for review, per the legislative news agencies.
Immediate effect delivers the cash relief now; conversion into law will define its permanence.
Sources[01]Context
The measure is part of the government's tariff response, alongside the R$13.5 billion Brasil Soberano credit line, regulated by resolution the day before.
The package combines tax relief and credit, signaling a structured response to the external demand shock.
Sources[01]
Transmission to assets
Market read-through
For tariffed exporters, the relief is about cash and timing, not demand: the MP does not restore lost US sales but removes a tax deadline that would worsen the working-capital squeeze at the worst moment.
For the fiscal picture, the cost is revenue deferral, not new forgiveness — the MP format signals urgency and immediate effect, with Congress defining the final version.
Portfolio impact
01Deferring suspended taxes preserves working capital for exporters whose US sales flow was cut by tariffsTrade tariffsThemeMeasures that change product entry costs and competitiveness in international trade.Open in the Market Map ↗.
Measurable, immediate cash relief, though it does not restore export revenue.
What would change the view: The effect holds if the MP becomes law without narrowed scope; lost demand still depends on the trade negotiation.
Direction is an explanatory hypothesis, not a forecast or recommendation.
Next signals
What to watch
- The MP's passage through Congress and possible amendments.
- Full confirmation of the Brasil Soberano credit resolution.
- Further measures in the tariff-response package.
- Progress in Brazil-US negotiations after the Lula-Trump call.
Limits of the reporting
What remains uncertain
- Initial full coverage came from the Senate and Chamber agencies; CNN Brasil confirmed the core terms in independent reporting.
- The deferral's fiscal cost was not quantified by sources.
- The MP's conversion into law depends on Congress and can change deadlines and scope.