U.S. President Donald Trump announced on Sunday (10) that he plans to tax all steel and aluminum imports to the United States at 25%.
The five largest suppliers of steel to the American market in January were Canada, followed by Brazil, Mexico, South Korea, and Germany. Canada also led aluminum exports to the United States during this period.
China does not export much steel or aluminum directly to the United States. A succession of presidents has imposed many tariffs on steel from that country. However, China dominates the global steel and aluminum industry. Its vast and modern plants produce as much or more of both metals each year than the rest of the world combined. Nevertheless, most of it is used within China itself, to build everything.
Recently, however, China’s steel and aluminum exports are increasing because its economy is struggling, which decreases domestic demand.
Reactions to Trump’s Plans
The measure could have a significant impact on neighboring Canada, which is the largest supplier of aluminum to the U.S.
Brazil, which was the second-largest supplier of steel to the U.S. in 2024, will also be affected.
The Brazilian government will wait for the U.S. government to officially announce the 25% tax on steel and aluminum imports before commenting on the matter, as well as announcing measures in response to the increased costs of exporting these products to the North American country.
The U.S. is the main destination for Brazilian product exports.
In an interview last week, President Luiz Inácio Lula da Silva stated that Brazil has the right to use the law of reciprocity. “For us, what would be important is for the U.S. to lower the tax and for us to lower the tax. But if he or any country increases the tax on Brazil, we will tax them too. It’s simple and very democratic,” Lula said.
During his first term, Trump imposed tariffs on steel and aluminum but later granted exemption quotas to partners, including Canada, Mexico, and Brazil, which are the main suppliers of these products.
A survey by the Instituto do Aço Brasil, based on official data from the Brazilian government, states that the U.S. was the main destination for the country’s steel, representing 49% of all steel that Brazil exported in 2023.
Sources: The New York Times and Agência Brasil