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U.S. restores metal tariffs on Brazil, Argentina, prompting wide concern
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U.S. President Donald Trump announced on Monday that he will “restore” tariffs on steel and aluminum imported from Brazil and Argentina, drawing wide concern domestically and abroad.
“Brazil and Argentina have been presiding over a massive devaluation of their currencies, which is not good for our farmers,” Trump tweeted. “Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries.”
Shortly after the announcement, Brazilian President Jair Bolsonaro told reporters that he would discuss the issue with Economy Minister Paulo Guedes, and talk to the U.S. president directly if necessary. “I have an open channel with Trump.”
Calling the move “unexpected,” Argentine Minister of Production and Labor Dante Sica said “we still don’t know what this implies. We want to know the details and the scope of the announcement.”
The Brazil Steel Institute, which represents the interests of steel exporters, said in a statement that the new tariffs would hurt not only Brazilian companies, but also U.S. steel companies, as they would need the semi-finished products imported from Brazil.
According to data from U.S. Commerce Department, Brazil exported 13.9 million metric tons of steel in 2018, down 9 percent from the previous year, with the United States being one of its top three markets.
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Amid strong opposition, Trump slapped tariffs on imported steel and aluminum globally last year citing national security concerns, defined under Section 232 of the Trade Expansion Act of 1962. Brazil and Argentina reached deals with the U.S. administration to put quotas in place in exchange for exemptions to steel and aluminum tariffs.
Trump’s conversion of Section 232 quotas on steel and aluminum from Brazil and Argentina is “illegal,” Jennifer Hillman, senior fellow for trade and international political economy at the Council on Foreign Relations, said in a tweet.