Brazil’s government on Wednesday introduced a plan to aid local exporters impacted by a 50% tariff imposed by U.S. President Donald Trump on multiple products from the country.
Named “Sovereign Brazil,” the initiative allocates 30 billion reais ($5.5 billion) in credit, along with other measures.
President Luiz Inácio Lula da Silva described the plan, which includes a bill to be sent to Congress, as a first step in assisting exporters. Congressional leaders attended the ceremony, marking the first such appearance in months, signaling increased political support for Lula in reaction to the U.S. tariffs.
Additional actions announced include postponing tax obligations for businesses affected by the tariffs, providing 5 billion reais ($930,000) in tax credits for small and medium-sized companies until the end of 2026, and expanding insurance access against canceled orders. The plan also promotes public purchases of goods that can no longer be sold to the U.S.
“We cannot be scared, nervous and anxious when there is a crisis. A crisis is for us to create new things,” Lula said. “In this case, what is unpleasant is that the reasons given to impose sanctions against Brazil do not exist.”
