Since the United States raised tariffs on imported steel and aluminum to 50 percent on June 4, Brazil's government and manufacturers have been pushing back, while small and mid-sized enterprises are already feeling the pressure. At a plant in the Brazilian state of Sao Paulo, 20,000 car hoods -- along with other parts -- are produced every month. Most are sold in the domestic market, but the company, Centauro, founded in 1970, also exports to 20 countries, mainly across Latin America. The auto parts sector is a good example of an industry where steel and aluminum are essential materials. Companies like Centauro have been keeping a close and increasingly concerned eye on the tariff war launched by the United States. Brazil exports billions of dollars’ worth of steel and aluminum to the United States each year. The government says the U.S. tariffs are misguided and unjustified, and officials warn that the impact on companies -- both large and small -- is already being felt across the industrial sector. Centauro's owner is also the president of Brazil's National Association of Car Parts Makers, Anfape. He says their biggest concern now is rising competition at home, as international steel products once destined for the U.S. are being redirected to other markets, including Brazil. "We realize that there will be an oversupply of all types of globally produced inputs and products that were previously consumed by the U.S., and that various other countries will now be competing for those markets," said Renato Fonseca, president of Anfape. According to the national development agency Sebrae, small and mid-sized companies account for nearly half of Brazil's industrial GDP. The president of Brazil’s Union of Small and Medium Industries (Simpi) said the group’s members lack the leverage that global steel giants have to protect their interests. "All of industry, directly or indirectly, depends on aluminum, steel, or both, as well as other raw materials. Whether it's equipment, facilities, or the product itself," said Josef Cury, the president of Simpi. Brazil is still trying to negotiate with the United States for exemptions on at least part of its steel exports. But even if those talks succeed, the ripple effects of the tariff war are already moving through the country's supply chains and may be difficult to avoid. The video shows: Sao Paulo, Brazil - June 6, 2025 1. Various of staff working at factory 2. Various of Renato Fonseca, president, Anfape, talking with reporter, showing Anfape products 3. SOUNDBITE (Portuguese) Renato Fonseca, president, Anfape: "We realize that there will be an oversupply of all types of globally produced inputs and products that were previously consumed by the U.S., and that various other countries will now be competing for those markets." 4. Various of staff transporting goods by forklift 5. SOUNDBITE (Portuguese) Josef Cury, president, Simpi: "All of industry, directly or indirectly, depends on aluminum, steel, or both, as well as other raw materials. Whether it's equipment, facilities, or the product itself.” 6. Various of staff working at factory [Restrictions: No access Chinese mainland]