The plan, called ‘Sovereign Brazil’, will include credit for businesses that rely on exports.
The Brazilian government has unveiled a plan to support local exporters impacted by the 50 percent tariff imposed by the United States.
Officials announced what has been dubbed “Sovereign Brazil”, a credit lifeline of 30 billion reais ($5.5bn) on Wednesday.
Brazil’s President Luiz Inacio Lula da Silva described the plan, which includes a bill to be sent to Congress, as a first step to help local exporters.
Congressional leaders attended Wednesday’s ceremony, a first in months, in a sign of growing political support for the leftist leader in response to US President Donald Trump’s tariffs.
Other measures announced by the Brazilian government include postponing tax charges for companies affected by US tariffs, providing 5 billion reais ($926,000) in tax credits to small and medium-sized companies until the end of 2026 and expanding access to insurance against cancelled orders. The plan also incentivises public purchases of items that could not be exported to the US.
The measures take effect immediately, but will only stay in place for four months unless Congressional leaders act.
“We cannot be scared, nervous and anxious when there is a crisis. A crisis is for us to create new things,” President Lula said. “In this case, what is unpleasant is that the reasons given to impose sanctions against Brazil do not exist.”
The tariffs have drastically weighed on sectors across the South American nation, including the beef industry. In July, when Trump first announced the plan, Robert Perosa, president of industry trade group Brazilian Beef Exporters Associations (ABIEC), said that the tariffs would make it “economically unfeasible” to continue to export to the US market.
Trump has directly tied the 50 percent tariff on many imported Brazilian goods to the judicial situation of his embattled ally, former Brazilian President Jair Bolsonaro, who is currently under house arrest.
In late July, the White House said that the order to impose this rate of tariffs is because of “the Government of Brazil’s politically motivated persecution, intimidation, harassment, censorship, and prosecution of former Brazilian President Jair Bolsonaro and thousands of his supporters are serious human rights abuses that have undermined the rule of law in Brazil”.
The former Brazilian leader is accused of trying to facilitate a coup after losing the election in 2022.
