Brazil Unveils Measures To Support Exporters Hit By 50% US Tariff
The initiative, called Sovereign Brazil, provides 30 billion reais (about 5.562 billion U.S. dollars) in affordable loans, tax breaks and other measures, prioritizing small businesses and those dealing in perishable foods.
It also facilitates public procurement from affected rural and agro-industrial sectors, modernizes the export guarantee system, and reactivates a program to refund taxes in the production chain.
In a speech during the announcement, Brazilian President Luiz Inacio Lula da Silva rejected the U.S. government's arguments for imposing tariffs on Brazilian products.
'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,' the president said.
While the tariff is unjustified, Brazil will not apply reciprocal measures for the time being, he added.
'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.
He referred to one of the reasons the White House gave for imposing tariffs: that putting Brazil's former President Jair Bolsonaro on trial for attempting to overthrow the government to stay in power was a human rights violation.
'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 said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
an hour ago
- The Sun
Brazil's Lula invites Trump amid tariff dispute over grapes
BRASÍLIA: President Luiz Inacio Lula da Silva extended an invitation to Donald Trump to visit Brazil amid escalating trade tensions. The Brazilian leader made the remarks while planting grapes, one of the products affected by Washington's 50-percent tariffs. 'I hope you can visit someday so we can talk and you can get to know the true Brazil, the Brazil of people who love samba, carnival, soccer, the United States, China, Russia, Uruguay, and Venezuela,' Lula said in a video message. The tariffs mark some of the highest imposed by the US on a trading partner. Unlike other trade disputes, the measures against Brazil have been framed in explicitly political terms. Trump has accused Brasilia of conducting a 'witch hunt' against his ally, former president Jair Bolsonaro. Bolsonaro faces trial over an alleged coup attempt against Lula in 2022. The US recently sanctioned the judge overseeing Bolsonaro's case and seven other Supreme Court magistrates. Lula has reaffirmed his support for Brazil's judiciary, pledging to defend 'the sovereignty of the Brazilian people.' His administration is preparing to challenge the tariffs, including potential legal appeals. The levies threaten key Brazilian exports and jeopardise a trade surplus worth $284 million last year. Lula emphasised cooperation over conflict, stating, 'I hope that someday we can talk, President Trump, so you can learn about the quality of the Brazilian people.' He framed his grape-planting as symbolic, saying it represented 'planting food, and not planting violence, or planting hate.' - AFP
The Sun
4 hours ago
- The Sun
Bolsonaro leaves house arrest for medical tests ahead of coup trial
BRASÍLIA: Brazil's former president Jair Bolsonaro temporarily left his house arrest on Saturday for medical examinations. The 70-year-old right-wing leader faces a Supreme Court ruling next month over alleged coup plotting after his 2022 election defeat. Bolsonaro has been confined to his home since early August for violating a court order banning social media use to influence public opinion. A judge approved his temporary release for hospital tests related to lingering health issues from a 2018 stabbing during his presidential campaign. His lawyers cited chronic gastrointestinal problems including severe reflux and hiccups requiring an intestinal endoscopy. Physician Leandro Echenique confirmed Bolsonaro recently recovered from two pneumonia episodes but was improving. Former presidential surgeon Claudio Birolini noted ongoing esophageal inflammation and advised increased weight training to compensate for restricted mobility under house arrest. About 20 supporters waving Brazilian and foreign flags greeted Bolsonaro outside the Brasília medical centre. 'We believe Jair Bolsonaro will be president of Brazil in 2026,' supporter Marcia Maria told reporters. The ex-president avoided media questions before returning home under judicial supervision. Brazil's Supreme Court will deliver its verdict on September 2 regarding charges that Bolsonaro attempted to overturn his election loss to current leader Luiz Inácio Lula da Silva. A guilty verdict carries potential 40-year imprisonment. Bolsonaro denies wrongdoing and has received backing from former US president Donald Trump, who condemned the case as political persecution. Trump recently imposed 50 percent tariffs on select Brazilian imports in protest against Bolsonaro's treatment. Search Intent Keywords: Bolsonaro house arrest, Brazil coup plot trial, Bolsonaro medical condition, 2022 Brazil election dispute, Bolsonaro supporters protest. - AFP
The Sun
18 hours ago
- The Sun
GWM Brazil Plant Officially Opens with President Lula in Attendance
Iracemápolis, São Paulo - Media OutReach Newswire - 16 August 2025 - In the early hours of August 16 (Beijing time), GWM's Brazil plant officially commenced operations, marked by a grand ceremony for the rollout of its first vehicle, the HAVAL H6 GT. The plant, located in Iracemápolis, São Paulo, was acquired from Daimler Group and has since been upgraded into an intelligent manufacturing base. As GWM's third full-process vehicle manufacturing center overseas, it carries the core mission of serving the Latin American market and acts as a key hub linking Europe, Asia, Southeast Asia, and Latin America. This milestone not only advances GWM's globalization in Latin America but also sets an example of China's high-quality automotive expansion, showcasing innovative collaboration between the Chinese and Brazilian auto industries. At the opening ceremony, Brazilian President Luiz Inácio Lula da Silva, Vice President Geraldo Alckmin, Chinese Ambassador Zhu Qingqiao, Brazil's Minister of Labor, and other dignitaries joined GWM President Mu Feng, GWM International President Parker Shi, GWM Brazil Region President Zhang Gengshen, and other GWM executives to witness this landmark moment in the company's globalization journey. President Lula personally signed the hood of the first HAVAL H6 GT, marking its final production step before entering the market. After the ceremony, he also posed for photos with factory workers. In his welcome address, GWM President Mu Feng stated: 'The Brazil plant is not only a strong commitment to the Brazilian market, but also the starting point for building the future together with our Latin American partners. In our global expansion, we adhere to the 'Four New Modernizations': Locally Built, Locally Operated, Globally Cultivated, Supply Chain Integrated. Following international quality standards, we will deliver highly reliable vehicles to the Latin American market.' He further announced that the plant's annual production capacity will gradually increase from 20,000 to 50,000 vehicles, creating over 1,000 direct jobs. Initial models include the HAVAL H9, POER P30, and HAVAL H6, with the H9 and POER P30 scheduled to launch in Brazil this September. Chinese Ambassador Zhu Qingqiao emphasized that since the establishment of diplomatic ties 51 years ago, China and Brazil's comprehensive strategic partnership has continued to deepen, with key areas of cooperation including renewable energy, infrastructure, and manufacturing. He described the Brazil plant as a model of Sino-Brazilian industrial synergy, combining 'Chinese smart manufacturing + Brazilian localization.' He noted that GWM is contributing to economic development and quality job creation in São Paulo and Brazil, and expressed hope for further collaboration in clean energy and digital technology to provide a 'China-Brazil solution' for global climate governance. In his speech, President Lula stressed: 'The GWM Brazil plant is very important for Brazil's national industry. Its inauguration shows that Brazil has the capability to acquire advanced technology and produce vehicles that can compete with those from any country in the world. This means creating jobs, increasing income, and enhancing professional expertise for Brazilians. We hope GWM will make Brazil its production base in Latin America. The Brazilian government stands ready to support businesses and welcomes more Chinese companies to invest here.' Brazilian Vice President Alckmin, the Minister of Labor, and the Mayor of Iracemápolis also gave speeches, jointly opening a new chapter for GWM in Latin America. Guests at the ceremony praised GWM's rapid growth and contributions to Brazil's automotive market and expressed confidence in the company's ability to further drive innovation and transformation in the industry. During the event, the Great Place to Work Institute awarded GWM Brazil the 'Great Place To Work' (GPTW) honor. In addition, GWM announced a donation of 500,000 reais to local schools in Iracemápolis to help improve educational facilities. Located in Iracemápolis, São Paulo, the GWM Brazil plant covers a total area of 1.2 million square meters, with 94,000 square meters of built-up area. It houses welding workshops, robotic painting lines, assembly lines, energy and equipment facilities, and logistics supply systems. With an initial annual production capacity of 50,000 vehicles, the plant is expected to create 1,000 jobs by the end of this year. Initial models will include the HAVAL H9, POER P30, and the HAVAL H6 series. The plant also supports flexible production of multiple energy types, including hybrid (HEV), plug-in hybrid (PHEV), and diesel. Since entering the Brazilian market in 2021, GWM has reached annual sales of 29,000 units within just three years, ranking 14th in the market. In the first half of this year, GWM sold over 15,700 vehicles in Brazil, up 19.8% year-on-year—17 percentage points above the industry average—demonstrating the company's confidence and determination to expand overseas and compete globally. Rooted in Brazil, expanding across Latin America, and reaching the world, GWM will continue to invest in Brazil, focusing on quality jobs, technological leadership, and R&D. The opening of the Brazil plant marks a new chapter in Chinese automotive globalization. With this plant, GWM will strengthen localized smart manufacturing, deepen its presence in Latin America, and bring its products and services to more global markets.
