Brazil's Vice President Geraldo Alckmin urged caution and emphasized the importance of dialogue with the United States following President Donald Trump's decision to impose a 25% tax on steel and aluminum imports. Speaking in Brasilia, Alckmin expressed Brazil's willingness to engage in discussions and suggested that implementing quotas could be a viable solution.
Acknowledging Brazil as a significant source of U.S. steel imports, Alckmin pointed out that the U.S. maintains an overall trade surplus with Brazil, indicating that the largest economy in Latin America is not the core issue. Trump initially imposed tariffs in 2018 under a national security law dating back to the Cold War, but granted exemptions to certain countries, including Canada, Mexico, and Australia. Meanwhile, duty-free quota agreements were established for Brazil, South Korea, and Argentina based on pre-tariff trade levels.
Alckmin, who also serves as Minister of Development, Industry, and Trade in President Luiz Inacio Lula da Silva's administration, endorsed the use of quotas in response to tariff increases, deeming it an effective mechanism. Notably, the United States has maintained a trade surplus with Brazil since 2008, totaling $253 million last year amidst bilateral trade exceeding $80 billion.
In response to Trump's tariffs, Brazilian steelmaker Aco Brasil expressed surprise and cautioned that such measures would not benefit either country.