Brasilia: Brazil has unveiled a package of measures to support exporters affected by the 50% tariffs imposed by the US government.
The initiative, named 'Sovereign Brazil', launched on Wednesday, offers 30 billion reais (approximately 5.562 billion US dollars) in affordable loans, tax breaks, and other support, prioritising small businesses and exporters of perishable goods, Xinhua News Agency reported. The program also facilitates public procurement from affected rural and agro-industrial sectors, modernises the export guarantee system, and reactivates a tax refund scheme within the production chain.
In his announcement, President Luiz Inacio Lula da Silva rejected the US government’s justification for the tariffs. “It is important to say that we cannot become nervous, apprehensive, or overly excited when there is a crisis. Crises exist so that we can create new things. The unpleasant thing is that there are no justified reasons for imposing tariffs on Brazil,” he said.
Despite the tariffs, Lula clarified that Brazil will not implement reciprocal measures for now. “We are not announcing reciprocity. Take note of how good we are at negotiating. Initially, we don't want to do anything that would justify worsening our relationship,” he added.
He also addressed one of the reasons cited by the White House for the tariffs: the claim that Brazil violated human rights by putting former President Jair Bolsonaro on trial for attempting to overthrow the government. “Brazil had no reason to be taxed, and we will not accept any accusations that we do not respect human rights in Brazil and that our trial is being conducted arbitrarily,” Lula said.
Earlier in July, Lula had warned against foreign interference in Brazil’s internal affairs amid rising tensions with the US over tariffs and digital regulations. Speaking to thousands of students at a national congress in Goiania, he dismissed suggestions linking the tariffs to Bolsonaro’s prosecution. “We won't accept interference from any foreign country,” he said.
Announcing additional measures, Lula stated that US-based digital platforms would be required to comply with Brazilian laws and pay taxes, accusing them of spreading disinformation and harming Brazilian society. “This country is sovereign. No foreigner gives orders to the president of Brazil. My only boss is the Brazilian people,” he asserted.
With IANS inputs