Suche
Mein Konto
Brazil reacts: 30 billion reals for companies against US tariffs!
Brazil announces aid package for companies affected by US tariffs. President Lula relies on negotiations instead of retaliation.
Brazil reacts: 30 billion reals for companies against US tariffs!
Brazil has a comprehensive Aid package presented to support companies affected by the recent increased US tariffs. This initiative comes at a critical time, as tariffs on various Brazilian products have been increased dramatically.
President Luiz Inácio Lula da Silva said that Brazil is committed to dialogue with the US to avoid an escalation of the conflict. He emphasized the inviolability of Brazil's sovereignty and did not announce any retaliatory measures. Rather, he wanted to find a constructive negotiated solution so as not to put a strain on bilateral relations.
Contents of the aid package
The centerpiece of the aid package is a credit line of 30 billion reals, which is equivalent to around $5.55 billion. This financing is provided through the state export guarantee fund FGE. In addition, a further 4.5 billion reals are to flow into funds that specifically support smaller companies.
The program also provides tax relief for exporters. It also allows government purchases of goods originally intended for the U.S. market to be redirected to public schools and hospitals. These measures are part of an executive order signed by Lula that takes effect immediately but requires congressional approval within four months.
Background to the customs measures
The increased tariffs that began in early August US President Donald Trump imposed vary from 10% to up to 50% for numerous goods from Brazil. The affected products include coffee, beef, seafood, textiles, shoes and fruit. Exceptions exist for important goods such as aircraft, orange juice, oil and pulp.
Trump justified this measure with a Brazilian court case against former President Jair Bolsonaro, which he described as a “witch hunt.” Bolsonaro is accused of plotting a coup after the 2022 election, which is likely to further strain tense relations between Brazil and the United States.
With the new aid package, the Brazilian government is trying to cushion the negative impact of tariffs on the national economy while maintaining diplomatic relations with the US government. President Lula will continue to rely on dialogue and negotiations to find an amicable solution.