The Brazilian government has unveiled a plan to support local exporters affected by U.S. tariffs. President Luiz Inácio Lula da Silva announced on Wednesday a credit lifeline of $5.5 billion as part of the "Sovereign Brazil" plan.

Brazil's Lula announced a $5.5 billion credit package to aid exporters hit by Trump's 50% tariffs, offering tax relief, insurance support and incentives to counter what he called baseless US trade sanctions.

Trump announced an additional 25% tariff on Indian goods on Wednesday, raising the total duty to 50% — among the highest imposed on any U.S. trading partner. The additional tariff, effective August 28, is meant to penalise India for continuing to buy Russian oil, Trump has said.

Brazil President Luiz Inacio Lula da Silva’s defiant response to Donald Trump’s 50% tariff threat was validated Wednesday — at least in the short term — with markets and businesses breathing a collective sigh of relief at the long list of exemptions to the levies.

Brazilian President Luiz Inácio Lula da Silva has announced a $5.5 billion aid package in a bid to support exporters hit by a 50 per cent tariff imposed by United States President Donald Trump. Other measures include postponing tax charges for business establishments affected by the high tariffs.

Brazil's government unveiled on Wednesday a long-awaited aid package for companies hurt by steep U.S. tariffs, centered on credit lines for exporters and government purchases of products that face greater hurdles in finding alternative markets.

Brazil's President Lula da Silva said the move is supposed to "create new things" out of the crisis resulted by Donald Trump's tariffs. While denouncing Trump, Lula says his country is still ready to negotiate.