Contingency plan will aim for minimal fiscal impact, official says | Economy

Mr. Durigan’s remarks are in line with Finance Minister Fernando Haddad, who told Rádio CBN on Monday (21) that the government is working on a contingency plan in case it fails to reverse the 50% tariff on Brazilian exports announced by Donald Trump.

“All our efforts are focused on ensuring the fiscal impact is as small as possible, while still delivering a contingency plan,” Mr. Durigan said at a press conference to present the government’s bimonthly revenue and expenditure report.

He emphasized that any assistance will be limited to sectors that are directly affected. “Everything will be done gradually and selectively, for sectors that may have suffered losses, and with the lowest possible fiscal impact, without undermining our fiscal targets,” he said.

Asked whether the fiscal impact would fall under primary or financial expenditures, Mr. Durigan declined to answer, noting that details are still being evaluated by President Lula. The topic was discussed by Mr. Lula and Mr. Haddad in a meeting on Tuesday, and talks will continue this and next week, Mr. Durigan said.

“We’re doing everything we can to reverse this tariff,” he noted, adding that the government is working closely with Brazilian companies that operate in the United States.

Mr. Durigan also said the government does not view a possible tax on big tech companies as a retaliatory measure in response to the U.S. tariffs. That issue, he said, is currently undergoing “technical refinement.”

On Tuesday, Mr. Haddad met with Vice President and Minister of Development, Industry, Trade, and Services (MDIC) Geraldo Alckmin at the MDIC headquarters. Mr. Alckmin is leading the committee that has been meeting with business leaders to discuss Brazil’s response to the U.S. tariffs.