Called ‘Sovereign Brazil’, the plan’s measures include a credit lifeline of 30 billion reais ($5.5 billion), postponing tax charges for affected companies, providing 5 billion reais ($930,000) in tax credits to small and medium enterprises (SMEs) until the end of 2026, and expanding access to insurance against cancelled orders.
The plan also incentivises public purchases of items that could not be exported to the United States.
The country is also granting a one-year extension of tax credits for companies that import items so they can produce goods for export.
President Luiz Inacio Lula da Silva termed the plan a first step to help domestic exporters, saying he and Trump have never spoken and that the latter does not want to negotiate. “In this case, what is unpleasant is that the reasons given to impose sanctions against Brazil do not exist,” he was quoted as saying by global newswires.
Trump has tied the 50-per cent tariff on many imported Brazilian goods to the judicial situation of former Brazilian President Jair Bolsonaro, currently under house arrest.
Hours later, US Secretary of State Marco Rubio announced new sanctions against at least two Brazilian officials.
Ricardo Alban, chairman of the Brazilian Industry Confederation, described the plan as “palliative, but necessary”.
ALCHEMPro News Desk (DS)
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