Brazil moves to shield exporters from U.S. tariffs
The post Brazil moves to shield exporters from U.S. tariffs appeared on BitcoinEthereumNews.com. The Brazilian government announced a wide-ranging support plan on Wednesday to help exporters impacted by a 50% import duty applied by U.S. President Donald Trump on several Brazilian goods. The program, known as “Sovereign Brazil,” provides 30 billion reais ($5.5 billion) in credit along with other steps intended to ease the blow. Just hours later, U.S. Secretary of State Marco Rubio announced more sanctions on Brazilian officials, showing that tensions between the two countries were rising, as reported by Associated Press. President Luiz Inácio Lula da Silva outlined the initiative as an initial effort to assist affected exporters, with a legislative proposal to be sent to Congress for approval. Lawmakers from different political factions attended the event in Brasília, the first such gathering in months, which observers viewed as a sign of greater political cohesion in response to U.S. trade actions. The plan involves postponing certain tax obligations for companies harmed by the U.S. tariffs, assigning 5 billion reais ($930 million) in tax credits to small and medium-sized enterprises until the close of 2026, and broadening insurance coverage for orders that get cancelled. It also directs public institutions to purchase goods that can no longer be shipped to the U.S. A one-year extension will be granted for tax credits under Brazil’s “drawback” scheme, allowing companies to import materials without tax if used in producing goods for export. Lula calls U.S. move “unpleasant” “We cannot be scared, nervous and anxious when there is a crisis. A crisis is for us to create new things,” Lula said. He called the U.S. move “unpleasant” and argued the justifications for the sanctions “do not exist.” Trump has tied the tariff decision to legal proceedings against his political ally, former Brazilian president Jair Bolsonaro, who is currently under house arrest. Lula accused Washington of using…
The post Brazil moves to shield exporters from U.S. tariffs appeared on BitcoinEthereumNews.com.
The Brazilian government announced a wide-ranging support plan on Wednesday to help exporters impacted by a 50% import duty applied by U.S. President Donald Trump on several Brazilian goods. The program, known as “Sovereign Brazil,” provides 30 billion reais ($5.5 billion) in credit along with other steps intended to ease the blow. Just hours later, U.S. Secretary of State Marco Rubio announced more sanctions on Brazilian officials, showing that tensions between the two countries were rising, as reported by Associated Press. President Luiz Inácio Lula da Silva outlined the initiative as an initial effort to assist affected exporters, with a legislative proposal to be sent to Congress for approval. Lawmakers from different political factions attended the event in Brasília, the first such gathering in months, which observers viewed as a sign of greater political cohesion in response to U.S. trade actions. The plan involves postponing certain tax obligations for companies harmed by the U.S. tariffs, assigning 5 billion reais ($930 million) in tax credits to small and medium-sized enterprises until the close of 2026, and broadening insurance coverage for orders that get cancelled. It also directs public institutions to purchase goods that can no longer be shipped to the U.S. A one-year extension will be granted for tax credits under Brazil’s “drawback” scheme, allowing companies to import materials without tax if used in producing goods for export. Lula calls U.S. move “unpleasant” “We cannot be scared, nervous and anxious when there is a crisis. A crisis is for us to create new things,” Lula said. He called the U.S. move “unpleasant” and argued the justifications for the sanctions “do not exist.” Trump has tied the tariff decision to legal proceedings against his political ally, former Brazilian president Jair Bolsonaro, who is currently under house arrest. Lula accused Washington of using…
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