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Brazil Cuts $16 Billion in Taxes to Fuel Output Hurt by Real

Brazil will provide $16 billion in tax breaks and toughen trade barriers to protect manufacturers hurt by a currency rally that’s fueling a surge in imports from China.

The targeted tax breaks and incentives, which amount to 25 billion reais over two years, were announced today by President Dilma Rousseff after a report showed industrial production plunged 1.6 percent in June, the second biggest drop since 2008.