Key Points

Launched on Wednesday, the initiative, called Sovereign Brazil, provides 30 billion reais (about 5.562 billion US dollars) in affordable loans, tax breaks and other measures, prioritising small businesses and those dealing in perishable foods, Xinhua News Agency reported.

It also facilitates public procurement from affected rural and agro-industrial sectors, modernises the export guarantee system, and reactivates a program to refund taxes in the production chain.

In a speech during the announcement, Brazilian President Luiz Inacio Lula da Silva rejected the US government's arguments for imposing tariffs on Brazilian products.

"It is important to say that we cannot become nervous, apprehensive, or overly excited when there is a crisis. Crises exist so that we can create new things. The unpleasant thing is that there are no justified reasons for imposing tariffs on Brazil," the president said.

While the tariff is unjustified, Brazil will not apply reciprocal measures for the time being, he added.

"We are not announcing reciprocity. Take note of how good we are at negotiating. Initially, we don't want to do anything that would justify worsening our relationship," he added.

He referred to one of the reasons the White House gave for imposing tariffs: that putting Brazil's former President Jair Bolsonaro on trial for attempting to overthrow the government to stay in power was a human rights violation.

"Brazil had no reason to be taxed, and we will not accept any accusations that we do not respect human rights in Brazil and that our trial is being conducted arbitrarily," Lula said.

Earlier, in July, Brazilian President Luiz Inacio Lula da Silva said that Brazil will not tolerate foreign interference in its internal affairs, amid growing tensions with the US over new tariffs and digital regulations.

Speaking to thousands of students at a national congress in Goiania in south-central Brazil, Lula dismissed suggestions that the tariffs were linked to the prosecution of former President Jair Bolsonaro.

"We won't accept interference from any foreign country," Lula said.

Lula pledged a civil and democratic response, while announcing that US-based digital platforms will be required to comply with Brazilian laws and pay taxes. He accused the companies of fueling disinformation and harming Brazilian society.

"This country is sovereign. No foreigner gives orders to the president of Brazil. My only boss is the Brazilian people," he said.

- IANS