U.S. President Donald Trump announced on Sunday (10) that he plans to impose a 25% tariff on all steel and aluminum imports to the United States.
The five largest steel suppliers to the U.S. market in January were Canada, followed by Brazil, Mexico, South Korea, and Germany. Canada also led aluminum exports to the U.S. during this period.
China does not export much steel or aluminum directly to the United States. A succession of presidents has already imposed many tariffs on the country’s steel. However, China dominates the global steel and aluminum industry. Its vast and modern plants produce as much or more of both metals every year than the rest of the world combined. Most of this is used within China itself, to build everything.
Recently, however, China’s steel and aluminum exports have been increasing because its economy is struggling, which reduces 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 said it will wait for the U.S. government to officially announce the 25% tariff on steel and aluminum imports to announce measures in response to the increased costs of exporting these products to the North American country.
In an interview last week, President Luiz Inácio Lula da Silva said that Brazil has the right to use the principle of reciprocity. “For us, what would be important is for the U.S. to lower their tariffs, and we would lower ours. But if they or any other country increases their tariffs on Brazil, we will also impose tariffs on them. This is simple and very democratic,” said Lula.
During his first term, Trump imposed tariffs on steel and aluminum but later granted exemption quotas for partners, including Canada, Mexico, and Brazil, which are the main suppliers of these products.
A survey by the Brazilian Steel Institute, based on official data from the Brazilian government, states that the U.S. was the main destination for Brazil’s steel, accounting for 49% of all steel exported by Brazil in 2023.
Sources: The New York Times and Agência Brasil