Brazil Shields Exporters from U.S. Tariffs Amid Rising Trade Tensions

Brazil has unveiled measures to protect its exporters from U.S. tariffs, signaling escalating trade tensions between the two nations. President Luiz Inácio Lula da Silva announced a legislative proposal aimed at assisting affected businesses, including tax deferrals and expanded insurance coverage for canceled orders. The plan allocates 5 billion reais ($930 million) in tax credits to small and medium-sized enterprises through 2026.

Lula criticized the U.S. sanctions as "unpleasant" and unjustified, urging resilience in the face of economic challenges. The initiative has drawn rare political unity in Brasília, with lawmakers from across the spectrum attending the announcement—the first such gathering in months.

The U.S. responded swiftly, with Secretary of State Marco Rubio imposing additional sanctions on Brazilian officials. The MOVE underscores deepening friction in bilateral trade relations, with observers noting the potential for further retaliatory measures.