The Brazilian government has launched a support plan for exporters affected by the 50% import duty imposed by the US. The program includes financial measures and tax relief.
New Support Plan for Exporters
On Wednesday, the Brazilian government introduced a support program called ‘Sovereign Brazil,’ providing 30 billion reais (approximately $5.5 billion) in credit to assist exporters impacted by the increased tariffs from the US. The plan includes deferring certain tax obligations for companies affected by the tariffs and allocating 5 billion reais in tax credits for small and medium enterprises until the end of 2026.
Brazil's Reaction to Sanctions
Brazilian President Luiz Inácio Lula da Silva described the US actions as 'unpleasant' and argued that the justifications for them 'do not exist.' Lula emphasized that Brazil aims to negotiate and is not looking for conflict, stating that the country should seek new markets for its products.
Next Steps and Overall Context
The trade dispute between Brazil and the US is ongoing, despite Lula's efforts to establish a more productive diplomatic atmosphere. Finance Minister Fernando Haddad highlighted that Brazil 'is being sanctioned for being more democratic than its aggressor.' While both nations continue to exchange measures and statements, Brazilian exporters are hopeful for support from the new program.
The newly created support program may assist Brazilian exporters in overcoming the impact of the new US tariffs; however, tensions between the two countries remain high.
