Brasília (dpa-Afx)-The Brazilian government has presented a billion-high aid package for companies affected by the US tariffs. Brazil and the world are witnesses to a “real extortion,” said the Minister of Institutional Relations, Gleisi Hoffmann. The situation had been provoked by those who had tried to abolish the democratic constitutional state and now faced the judiciary.
The core of the package is a credit line of 30 billion real (around 4.7 billion euros), the award of which is linked to the preservation of jobs. In addition, export loans are granted and tax payments for particularly affected companies are postponed. President Luiz Inácio Lula da Silva signed the measure as a temporary law that must be confirmed by the congress within 120 days.
“Brazil does not use reciprocity, we initially do not want to do anything that worsens our relationships,” said Lula. His government focuses on greater diversification of the export markets and negotiates with partners such as India, China and Russia about alternative sales opportunities.
Political tensions as a background
President Donald Trump imposed the US tariff of 50 percent last week. Textiles, machines, food and chemical products are particularly affected. Part of the decision was justified by Washington with the criminal prosecution of former Brazilian President Jair Bolsonaro.
The right ex-president must be responsible for his role in an attempted coup d’état after his election defeat in 2022 before the judiciary. He is currently under house arrest./ppz/dp/he