Brazil Unveils $5.5 Bln Plan to Shield Exporters from Trump’s Tariffs

Brazilian President Luiz Inácio Lula da Silva has announced a sweeping $5.5 billion relief package to support exporters reeling from punitive US tariffs of up to 50 per cent, imposed by President Donald Trump on a range of Brazilian goods.

The plan allocates 20 billion reais (€4.7 billion) in credit to assist affected businesses, alongside measures to defer tax liabilities and incentivize domestic consumption of products originally destined for the American market.

Lula urged resilience, asserting that crises are opportunities for innovation, while criticizing the US move as lacking legitimate grounds.

Washington’s latest trade offensive singles out Brazil with some of the highest levies imposed globally, a move Trump linked to the legal troubles of his ally and Brazil’s former far-right president, Jair Bolsonaro. Bolsonaro, now under house arrest, faces allegations of plotting a coup following his 2022 electoral defeat.

Lula accused the US of weaponizing human rights rhetoric to justify geopolitical disputes, asserting that Brazil’s judiciary operates independently. Finance Minister Fernando Haddad condemned the tariffs as punitive measures against a nation “more democratic than its aggressor.”

Despite the tensions, Lula signaled no immediate plans to retaliate with higher tariffs on American imports, stressing a preference for diplomacy over confrontation. He reaffirmed Brazil’s commitment to defending its sovereignty while maintaining constructive relations with Washington and neighboring states.