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Finance Minister: Brazil will present Lula with a credit-based response if the US tariffs increase.

Fernando Haddad, Brazilian Finance Minister, said that a contingency response plan to the higher U.S. Tariffs would be presented to Luiz Inacio Lula Da Silva on Monday. The contingency will include measures such as credit lines.

Haddad, in an interview with the local radio station Itatiaia said that 10,000 Brazilian companies may be affected by the increased levies of Brazilian goods from 10% to 50%.

Take effect August 1,

The Minister stressed that Brazil is open to dialogue, but suggested that U.S. president Donald Trump was not.

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To engage in negotiation. He said that political forces aligned to former Brazilian President

Jair Bolsonaro

We are trying to stop any talks being started.

Bolsonaro, a far-right ally to Trump, is accused of planning a coup in order to reverse his narrow loss of the 2022 elections to Lula.

Trump denounced this case as "a witch hunt" and asked Brazil's judiciary not to pursue the charges. He did so in a letter that announced the higher tariffs for Brazil.

The son of the former President, Congressman Eduardo Bolsonaro is now living in the United States and has posted on social media about his meetings with Trump's allies.

Haddad, without naming Bolsonaro Junior, said that he believed these ties, as well as opposition to Brazil's widely-used instant payment system Pix were factors behind the U.S. ruling.

Lula had said earlier on Thursday at a public gathering that the U.S. Government was "afraid of Pix" because it threatened credit cards. In a recent U.S. report, the system was listed as an unfair trade practice.

investigation

Haddad stated that Pix is a valuable technology developed in Brazil and undermines those who profit from financial intermediation. (Reporting and editing by David Gregorio; Marcela Ayres)

(source: Reuters)