Brazil has escalated its response to steep U.S. import levies, filing a dispute at the World Trade Organization after Washington raised tariffs on a wide range of Brazilian goods to 50% earlier this month. A planned Treasury-level meeting in Washington was called off, underscoring the deterioration in bilateral ties. President Luiz Inacio Lula da Silva said his government will open a 30 billion-reais (US$5.55 billion) credit line to support companies whose exports have been hit by the higher duties. The package, to be formalised by executive order on 13 August, will also allow direct government purchases to help firms maintain production and jobs. Finance Minister Fernando Haddad added that the plan fits within the 2025 budget framework and will overhaul Brazil’s Export Guarantee Fund so it can extend loans as well as guarantees. Congressional leaders have been invited to Wednesday’s signing ceremony, signalling broad domestic backing as Brasília seeks alternative markets and presses its case at the WTO.