BRASILIA, Aug 13 (Reuters) — Brazil’s government unveiled on Wednesday a long-awaited aid package for companies hurt by steep US tariffs, centered on credit lines for exporters and government purchases of products that face greater hurdles in finding alternative markets.
US President Donald Trump hiked duties on several goods from Brazil to 50 percent from 10 percent earlier this month. Although some sectors were exempted from the steeper levies, the move is still set to hurt industries such as coffee, beef, seafood, textiles, footwear and fruit.
Brazilian President Luiz Inacio Lula da Silva had already signaled his administration would not immediately retaliate against the tariff hike, instead prioritizing support for the most affected sectors.
“We will insist on negotiating … but our sovereignty is untouchable,” Lula told an event in Brasilia, saying he was open to talks on topics such as ethanol trade.
“We are not announcing reciprocity measures. We don’t want, at first, to do anything that could justify worsening our relations,” the leftist leader added.
The centerpiece of the aid plan is a 30 billion-real ($5.55 billion) credit line via the existing Export Guarantee Fund (FGE), which is managed by state development bank BNDES, according to a statement.
The government will also make additional contributions totaling 4.5 billion reais to strengthen some funds supporting aid for smaller companies, it added.
The measures are part of an executive order signed by Lula, which takes effect immediately but must be approved by Congress within four months to remain in force.
