Brazil and Mexico, two major steel exporters to the U.S., will wait for U.S. President Trump to announce any potential tariffs on steel and aluminum imports before responding, officials from both countries mentioned on Monday.
Trump is expected to announce new tariffs on steel and aluminum imports into the United States, in addition to existing duties, marking another significant development in his trade policy changes.
Nearly a quarter of the steel utilized in the U.S. is imported, and Trump aims to boost domestic production following recent shutdowns of American mills.
Mexican President Claudia Sheinbaum stated in a press conference on Monday that her administration would "wait for any announcements today before deciding on a course of action."
In the same vein, Brazil's finance minister, Fernando Haddad, indicated that the Brazilian government would "only issue statements at the proper time and in response to definitive decisions, not in reaction to potentially misinterpreted or altered announcements."
Haddad clarified this stance in response to a local newspaper's claim that Brazil might retaliate against steel tariffs, which he dismissed as "inaccurate."
During his previous term, Trump enforced a 25% tariff on steel and a 10% tariff on aluminum, exempting Brazil and Mexico later on. Leading steel companies in the region are significant suppliers to the U.S. market.
Ternium, which shipped a record-breaking 4.1 million metric tons of steel in Mexico in the third quarter, lists U.S. automakers among its principal clients, as it expands operations to meet steel demands under Mexico's trilateral trade deal with the U.S. and Canada.
On Monday afternoon, New York-listed Ternium shares rose by 0.8%. Shares of Ternium-controlled Usiminas increased by around 2% in Brazilian trading, with only a small fraction of its steel exports being international.
Brazilian steelmaker Gerdau benefited from the tariffs due to its 11 production facilities in the U.S. and Canada, with its shares rising over 4%.
Steel industry leaders globally have accused China of "dumping," a practice in which it sells excess steel overseas at prices below market value.
Both Brazil and Mexico have imposed double-digit tariffs on Chinese steel imports to combat this practice, with Brazilian steel producers advocating for even higher tariffs.
Trump has accused Mexico of being a gateway for Chinese trade to the U.S. Preceding the Biden administration, officials raised similar concerns regarding the origins of steel shipments from Mexico, speculating they could have originated from China.
Mexico's economy ministry recently implemented measures to improve the monitoring of steel imports and exports, along with their countries of origin.