Brazil Enacts $5.5B Plan Amid US 50% Tariffs Impacting Job-Intensive Sectors

President Donald Trump's imposition of a 50% tariff on Brazilian imports has prompted Brazil to announce a $5.5 billion credit line contingency plan to support affected sectors and workers, particularly small exporters of machinery and fruit, while seeking alternative trade partners. The tariffs have strained Brazil-U.S. relations, with canceled high-level meetings and political tensions, notably related to former Brazilian President Jair Bolsonaro's legal troubles. Similarly, India's job-intensive export sectors, such as textiles and apparel, have been severely impacted by Trump's tariffs, which have stopped shipments and threatened significant job losses, while capital-intensive industries remain largely unaffected. Meanwhile, major U.S. tech firms like Nvidia, AMD, and Apple have negotiated deals with the Trump administration to secure tariff exemptions or relief by committing to increased U.S. investments, highlighting the tech sector's efforts to mitigate tariff costs. Trump's tariffs on Brazil have not succeeded in influencing Bolsonaro's legal situation but have opened doors for U.S. Big Tech companies to gain leverage in Brazil's regulatory environment, with Brazilian officials showing willingness to discuss easing tensions to address the 50% tariffs. This dynamic suggests that while tariffs are a tool of political pressure, they also reshape trade relationships and regulatory negotiations between the U.S., Brazil, and other affected countries.