In a statement released on March 12, 2025, the Brazilian Government expressed its strong disapproval of the United States’ decision to impose tariffs on steel and aluminum imports from all countries at a rate of 25%. The move, which also involves revoking existing quota arrangements for these products, is expected to significantly impact Brazilian exports to the US market.
The impact of this new trade policy on Brazil’s economy will be substantial, with approximately $3.2 billion in steel and aluminum exports to the United States in 2024 being affected by the tariffs. The Brazilian Government has reiterated its support for the multilateral trading system and considers the unilateral barriers imposed by the US government as unjustified and misguided.
Historically, Brazil and the US have enjoyed a long-standing relationship of economic cooperation and integration. Despite this, the US maintains a substantial trade surplus with Brazil, amounting to around $7 billion in goods alone in 2024. The Brazilian steel sector has been an integral part of this partnership, with US metallurgical coal being a key input for Brazilian producers.
Brazil is currently the third-largest importer of US metallurgical coal and the largest exporter of semi-finished steel to the United States, with $1.2 billion and $2.2 billion in sales respectively in 2024. Semi-finished steel is a crucial component for the US steel industry itself.
The Brazilian Government will work closely with domestic producers and the private sector to defend its interests in this matter. In upcoming meetings scheduled over the coming weeks, officials will evaluate various measures to mitigate the effects of the US tariffs and safeguard Brazil’s legitimate interests, potentially including recourse to the World Trade Organization.
Global Context
The imposition of tariffs by one major trading partner can have far-reaching implications for global trade. This move by the US has been met with criticism from various quarters, highlighting the need for greater cooperation and understanding between nations in navigating the complexities of international trade.
Brazil’s position on this issue underscores its commitment to upholding multilateral principles and promoting free and fair trade. As a major player in the global economy, Brazil will continue to advocate for policies that support economic growth, job creation, and sustainable development.