The Brazil Government has launched a new plan to support local exporters impacted by the 50 per cent tariff imposed by US President Donald Trump. Named ‘Sovereign Brazil,’ the plan includes a series of measures designed to help companies endure the economic shock.
President Luiz Incio Lula da Silva introduced the initiative as a crucial first step to assist affected businesses. The highlight of the plan is a substantial credit of 30 billion reais ($5.5 billion) to provide financial stability for exporters. Additionally, the government will postpone tax charges for companies hit by the tariffs and offer 5 billion reais ($930 million) in tax credits specifically for small and medium-sized businesses until the end of 2026. The plan also expands access to insurance against canceled orders, offering another layer of protection for exporters.
Lula emphasizes, the tariffs are an opportunity for the country to innovate, stating, the crisis will help them create new things.
Beyond financial aid, the ‘Sovereign Brazil’ plan encourages public institutions to prioritize purchasing goods that can no longer be exported to the US. This measure aims to create a domestic market for products that would otherwise struggle to find a buyer, helping to maintain production and employment levels.
With these comprehensive measures, the Brazil Government hopes to mitigate the economic fallout from the US tariffs and support its export-driven industries during this period of trade uncertainty.
