Trump resumes tariffs and doubles taxation on steel and aluminum

United States President Donald Trump increased tariffs on steel and aluminum imports from 25% to 50%, as it also reaches Brazil from Wednesday (4).

Only escaped from this new increase the United Kingdom, which maintains the previous percentage for signed a commercial agreement with the US.

Since March, the 25% protectionist rate rises these materials has been in force and is part of Trump’s advance in an attempt to corner partners for advantages through a trade war. In some areas the new taxes are suspended, such as China.

Also read: Tariff can frustrate Trump and open opportunities for emerging people like Brazil

The Brazilian government, by the Ministries of Foreign Affairs and Development, Industry, Commerce and Services, maintains close contact with US authorities to circumvent the tariff elevation.

In April, the Brazilian National Congress approved the “Economic Reciprocity Law”, which authorizes the government to retaliate abusive business practices.

Steel

Brazil is the second largest steel supplier for the US, the first is Canada. The metal alloy formed by iron and carbon is the basis for industrial production of sheets, tubes and profiles. In all, Brazil exported in 2024 to the US about 4.1 million tons. Americans import for the industry about 25% of all their steel consumption.

If the new fare becomes effective, Brazilian steel exports should return to the sale of products to other markets to circumvent possible drop in demand.

Read more: Brazil gains response power to Trump tariffs

But for this to happen, Brazilians should adapt to expand their position in other markets, such as Chinese, for example. For this, it will have to be made investment in the transformation industry to replace the export of gross material with the sale of products with some processing, such as plates or plates, which are the preference of the oriental consumer market.

Aluminum

In the case of aluminum, the Brazilian Aluminum Association (Abal) estimates that up to 90% of the US primary metal has the Brazilian DNA in 2024. They absorbed “16.8% of Brazilian aluminum exports, especially sheets and leaves,” they say.

In a statement, the entity maintains that “the moment requires more than punctual reactions” and calls for “a double movement”: “On the one hand, caution and calibration in the adoption of mitigation emergency measures – such as Strengthening trade defense instruments and tariff adjustments to curb unfair practices and trading deviations; On the other hand, strategic vision to reposition Brazil in the new geography of the global aluminum chain, based on its structural competitive advantages. ”