The plan, called “Sovereign Brazil,” includes credit for businesses that rely on exports.
The Brazilian government has announced plans to support local exporters affected by the 50% tariffs imposed by the US.
Authorities announced what was called “Sovereign Brazil,” a 30 billion rare ($5.5 billion) credit lifeline on Wednesday.
Brazilian President Luis Inacio Lula da Silva has explained the plan, which includes a bill sent to parliament as the first step to help local exporters.
Congressional leaders attended the ceremony, their first in months, on Wednesday, in signs of growing political support for left-wing leaders in response to President Donald Trump’s tariffs.
Other measures announced by the Brazilian government include deferred tax costs for businesses affected by US tariffs, and five billion Reais ($926,000) to the end of 2026 to provide tax credits to small businesses and expanding access to insurance on cancelled orders. The plan also encourages public purchases of items that could not be exported to the United States.
The measures will take effect immediately, but will only stay for four months unless Congressional leaders act.
“When there is a crisis, we can’t be scared, nervous, and worrying. A crisis is for us to create something new,” President Lula said. “What’s uncomfortable in this case is that there is no reason given to impose sanctions against Brazil.”
Tariffs weigh dramatically in the South American national sector, including the beef industry. When Trump first announced the plan in July, Robert Perosa, president of the Brazilian Cattle Exporters Association (ABIEC), an industry trade group, said tariffs would make it “economically unfeasible” to continue exporting to the US market.
Trump has directly linked 50% tariffs on many imported Brazilian goods to the judicial situation of former Brazilian president Jea Bolsonaro, currently on house arrest.
In late July, the White House said the order to impose the tariff rate was “for Brazil’s politically motivated persecution, threats, harassment, censorship and the prosecution of President Jer Bolsonaro.
The former Brazilian leader has been accused of trying to promote a coup after losing the election in 2022.
