Brazil Prioritizes Industry Relief Over Retaliation in Response to U.S. Tariffs, Sources Say

Brazil's government has temporarily halted plans for direct retaliation against the recent U.S. tariffs, instead focusing on implementing relief measures for the most affected industries, according to informed sources. The exemptions granted last week by U.S. President Donald Trump spared key sectors of Brazil's economy, easing concerns among investors and business leaders. This approach has led Brasilia to adopt a cautious stance, avoiding immediate reciprocal tariffs or retaliatory actions that could escalate tensions. Government officials, speaking on condition of anonymity, indicated that negotiations with Washington are expected to be slow and complex. Meanwhile, Brazil is prioritizing immediate support for exporters through initiatives like public credit lines and export financing assistance. Some officials are exploring potential responses targeting U.S. companies, such as suspending royalty payments for pharmaceuticals and media copyrights, but consider these measures as a last resort if diplomatic talks fail. Although Brazil had previously considered imposing a new tax on large U.S. tech firms, the plan was shelved this year to prevent worsening relations ahead of upcom...