Brazil launches $5.5bn program to counter Trump's tariffs
Brazil's President Lula just announced a $5.5 billion "Sovereign Brazil" program to support local exporters facing a steep 50% US tariff introduced by President Trump.
The plan includes credit, tax breaks, and insurance for affected companies.
Calling the tariffs "baseless," Lula said Brazil is ready to push through this economic setback.
Breakdown of the program
The program gives small and medium businesses tax credits (worth 5 billion reais) and postpones tax payments for companies hit by the tariffs.
It also expands insurance for canceled orders and encourages public agencies to buy goods blocked from the US market.
With top political leaders backing the move, it's clear this isn't just about trade—it has significant implications for Brazil's economy and politics right now.