The recent decision by the United States to raise the import tariff on steel and aluminum from 25% to 50% affects not only Brazil but the entire world, according to Brazil’s Vice President and Minister of Development, Industry and Commerce, Geraldo Alckmin. He remarked on the broader implications of this move, noting the increased costs of products for all parties involved.
Alckmin emphasized the importance of continuing dialogue as the best path forward in response to these developments.
On Wednesday, the U.S. government announced the tariff increase, though the United Kingdom was exempted due to a trade deal reached last month between the two countries.
Echoing Alckmin’s sentiments, Ricardo Alban, the president of the Brazilian National Confederation of Industry (CNI), described the tariff hike as a setback for trade relations between Brazil and the U.S., while also supporting ongoing dialogue.
Brazil, as the largest economy in Latin America, is a significant exporter of steel to the U.S., along with Canada and Mexico.
In 2024, 60% of Brazil’s steel exports and nearly 17% of its aluminum exports were directed to the U.S. market, according to data from industry associations.
In the first quarter of this year, the U.S. accounted for 75% of Brazilian steel exports, based on CNI estimates.
Brazil’s government is actively engaged in negotiations with the U.S. administration, advocating for balanced bilateral trade relations.
In addition to the 50% tariff on steel products, the U.S. maintains a 25% tariff on imported cars and certain auto parts, with a standard 10% tariff applied to all trading partners while negotiations continue with some, such as China.
