Brazil to unveil help for its companies hit by US tariffs
RIO DE JANEIRO : Brazilian President Luiz Inacio Lula da Silva on Tuesday announced aid worth some US$5.5 billion for companies hit by Donald Trump's trade tariffs, as part of a package of economic relief measures.
Last Wednesday the 50% tariffs imposed by Washington went into effect on many Brazilian products.
The duties impact key sectors of Latin America's largest economy, notably including coffee and meat, although the US president excluded some strategic exports such as orange juice, civil aircraft and fertilizer.
Lula will launch his contingency plan during a ceremony in the capital Brasilia on Wednesday.
'Tomorrow I will sign a provisional measure creating a credit line of 30 billion reais for Brazilian companies that may suffer losses due to Trump's tariffs,' Lula told a local radio station.
According to Brasilia, the new duties affect 36% of Brazil's exports to the US, equivalent to US$14.5 billion in 2024.
The leftist leader said much of the US$5.5 billion worth of assistance will be directed to small businesses, because 'large companies have greater resilience'.
'No one will be left helpless in the face of president Trump's taxes,' he added. 'We will ensure the survival of Brazilian companies.'
The government will also prioritise domestic products and sourcing in its purchases and encourage plans to find new markets for impacted companies.
Lula said Brazil was also considering reciprocal measures against the US.
Washington slapped the tariffs on Brazil in part because of the prosecution of Trump's right-wing ally Jair Bolsonaro, whose trial on charges of planning a coup has been slammed by the US president as a 'witch hunt'.
Brazil filed a complaint with the World Trade Organization last Wednesday to challenge the US tariffs, but Lula said in the radio interview he remains 'ready to negotiate with the US'.
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