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Brazil: Brazil seeks to avoid a trade war over Trump's steel tariffs
Brasília, Brazil - February 16, 2025 Negotiation and not retaliation is the path chosen by Brazilian diplomacy to deal with the emergency of the 25% tariffs imposed by the Trump administration on steel and aluminum exports to the United States, a measure that will also affect Brazil as of March 12. After Trump signed the decree, the Brazilian Minister of Institutional Relations, Alexandre Padilha, commented on Washington's decision, stating that "Brazil does not encourage or will enter into any trade war. We will always be in favor of continuing to strengthen free trade." The Latin American giant is a major supplier of steel and iron to the US and was the second largest exporter of these products to the US market in 2024, with a monthly average of 312,239.34 tons. Much of Brazil's exports are semi-finished products that then go through industrial processes in the US. American steel mills could be harmed if they could not import semi-finished steel from Brazil. As for aluminum, the US market represented a movement of 267 million dollars for the Brazilian sector in 2024, with 72,400 tons, 13.5% of total Brazilian exports of this metal. The Brazilian Aluminum Association (Abal) expressed “concern about the impact of the new tariff measure, which does not provide for exceptions or exemptions for any country.”
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