Brazil is preparing relief measures for companies expected to be affected by higher U.S. tariffs starting in August, Finance Minister Fernando Haddad said on Tuesday.
The plan will be reviewed by President Luiz Inacio Lula da Silva and aims to help companies maintain their investments.
Speaking to CNN Brasil, Haddad said the proposal does not include tax exemptions for the affected firms. He added that the government still does not know the full details of the U.S. tariffs, which are set to rise from 10% to 50% on August 1.
The U.S. is a key market for Brazil’s exports, including crude oil, coffee, orange juice, beef, and aircraft. Many of the aircraft exports come from Embraer, which may receive additional credit support, according to Ports and Airports Minister Silvio Costa Filho.
Haddad said the tariffs could lead to lower domestic food prices in Brazil, as more products like beef and fruit remain in the local market. He noted this might bring a positive effect on food inflation.
He also said Brazil should not respond to the U.S. with the same type of measures, arguing that matching the tariffs could hurt Brazilian consumers.
When asked if Brazil might tax big tech companies as part of any response, Haddad said no decisions have been made yet.
