Brazil Announces Support Package for Exporters Affected by U.S. Tariffs
(MENAFN) Brazil has introduced a robust set of measures aimed at assisting exporters affected by a steep 50% tariff imposed by the U.S. government. Announced on Wednesday, the initiative—dubbed Sovereign Brazil—includes a package valued at 30 billion reais (approximately 5.562 billion USD). This plan prioritizes small businesses, particularly those in the perishable food sector, offering low-interest loans, tax exemptions, and other supportive steps.
Additionally, the package enhances public procurement opportunities for struggling rural and agro-industrial sectors, updates the country's export guarantee system, and revives a program designed to refund taxes along the production chain.
In his address, Brazilian President Luiz Inácio Lula da Silva strongly rejected the U.S. government's justification for the tariff imposition. "It is important to say that we cannot become nervous, apprehensive, or overly excited when there is a crisis. Crises exist so that we can create new things. The unpleasant thing is that there are no justified reasons for imposing tariffs on Brazil," Lula stated.
Despite his disagreement, the president emphasized that Brazil would not immediately take retaliatory action. "We are not announcing reciprocity. Take note of how good we are at negotiating. Initially, we don't want to do anything that would justify worsening our relationship," he added.
The U.S. administration cited one of the reasons for the tariffs as Brazil's handling of former President Jair Bolsonaro's trial for attempting to overthrow the government. "Brazil had no reason to be taxed, and we will not accept any accusations that we do not respect human rights in Brazil and that our trial is being conducted arbitrarily," Lula affirmed.
The measures come amid heightened trade tensions between the two nations, signaling a potential shift in Brazil's approach to international relations.
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