Brazil announces $5.5B package to counter Trump’s tariffs
Brazilian President Luiz Inacio Lula da Silva announced a plan on Wednesday to support exporters who have been hit by high tariffs of up to 50% imposed by US President Donald Trump on several products from the country.The plan provides credit of 20 billion reais ($5.5 billion; €4.7 billion) to support the embattled exporters.Other measures in the plan include postponing tax charges for businesses affected by the tariffs, while also incentivizing Brazilians to buy locally produced goods that would have otherwise been exported to the US.”We cannot be scared, nervous and anxious when there is a crisis,” Lula said.”A crisis is for us to create new things.”Lula also said Trump has no good reasons for hitting Brazil with high tariffs.
What’s behind Trump’s tariffs on Brazil?
While the Trump administration announced sweeping tariffs on many countries around the world, Brazil was ultimately singled out with some of the highest levies of up to 50%.Trump said the additional tariffs were a reaction to the legal situation of his ally, the far-right populist former president, Jair Bolsonaro.Bolsonaro is currently under house arrest over allegations that he plotted a coup after losing the 2022 presidential election. Lula did not hold back on the grounds for the tariffs, saying every time the US decides to “fight with someone,” they paint their rivals as the devil.”Now they want to talk about human rights in Brazil… We have to look at what happens in the country that is accusing Brazil,” Lula added, hinting at Trump’s domestic policies.The US president had cited “human rights abuses” by the left-wing government in support of his ally Bolsonaro.
Lula calls for negotiations with Washington
Lula responded to the claims, saying Brazil’s judiciary is independent, with the country’s Finance Minister Fernando Haddad saying Brazil is being “sanctioned for being more democratic than its aggressor.”The Brazilian leader has so far refrained from imposing higher tariffs on American imports, saying he is not interested in “worsening our relations with the US.””We like to negotiate,” Lula said.”We don’t want conflict. I don’t want conflict with Uruguay, Venezuela, or even the US. The only thing we need to demand is that our sovereignty is untouchable, and that no one should have any say in what we should do.”
