BRASILIA (Reuters) -Brazil is planning relief measures for companies impacted heavily by steeper U.S. tariffs set to take effect in August, Finance Minister Fernando Haddad said on Tuesday.
Speaking to CNN Brasil, Haddad said the plan, which will be reviewed by President Luiz Inacio Lula da Silva, includes steps to ensure companies have the confidence to maintain their investments.
He denied, however, that the plan includes tax exemptions for the affected companies.
Earlier on Tuesday, Ports and Airports Minister Silvio Costa Filho said the government would support planemaker Embraer, citing a potential additional credit line for the company.
Crude oil, coffee, orange juice, beef, and aircraft – mainly from Embraer – are among Brazil’s top exports to the United States.
Haddad said the government still lacks clarity on what exactly will come from the U.S. starting on August 1, the date U.S. President Donald Trump has set to hike tariffs on Brazilian imports to the U.S. to 50% from the current 10%.
The minister said Brazil could see a positive surprise in food inflation due to the tariffs’ impact on sectors such as beef and fruit, noting that domestic prices appear to be falling as a result of increased supply in the local market.
Haddad also said Latin America’s largest economy cannot make the “symmetrical mistake” of retaliating in the same areas targeted by the U.S. tariffs, which he said would amount to responding in kind and ultimately punishing Brazilian consumers.
“I cannot anticipate decisions that have not been made,” he said, when asked whether taxing big tech companies was among the retaliation measures under consideration.
(Reporting by Marcela Ayres; Editing by Chris Reese)
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