The U.S. slapped new tariffs on Brazil’s key exports like coffee, beef, and industrial goods.

To fight back, President Lula launched a $5.5B “Sovereign Brazil” plan with tax breaks, cheap loans, and support for local industries.

Brazil also took the case to the WTO and is boosting trade with Asia and the EU — without starting a direct tariff war (yet).

💡 Why it matters:

Coffee and food prices could rise worldwide.

U.S. buyers may lose out as Brazil looks for new partners.

Trade tensions may push Brazil closer to BRICS and Mercosur allies.

👉 Lula is trying to protect Brazil’s economy without shutting the door on talks.