Brazil’s President Luiz Inacio Lula da Silva announced a $5.5 billion support package to help exporters affected by new US tariffs.
US President Donald Trump recently imposed tariffs of up to 50% on many Brazilian products. To ease the impact, Lula’s plan will:
- Offer 20 billion reais ($5.5 billion) in credit to exporters.
- Allow businesses to delay tax payments.
- Encourage Brazilians to buy locally made products that can no longer be sold in the US.
Lula said Brazil must face the crisis with creativity instead of fear.
Why Did Trump Target Brazil?
Trump has introduced tariffs on many countries, but Brazil was hit especially hard. He claimed the move was because of “human rights issues” under Lula’s government and as a show of support for Jair Bolsonaro, Brazil’s former president and Trump ally.
Bolsonaro is currently under house arrest for allegedly plotting a coup after losing the 2022 election. Lula criticized the US reasoning, saying Washington often paints its rivals as “the devil.” He also pointed out that the US should reflect on its own human rights record.
Read more: Trump Says Russia Lost India as Oil Client After 50% Tariffs; Warns of Sanctions on China
Brazil Pushes for Talks, Not Conflict
Brazil’s Finance Minister Fernando Haddad argued that the US is punishing Brazil for being “more democratic than its aggressor.”
Despite the pressure, Lula has chosen not to impose retaliatory tariffs on American imports.
“We like to negotiate,” he said. “We don’t want conflict—with the US or any neighbor. But our sovereignty must always be respected.”
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