U.S. tariff hike pressures Brazilian steel exports, prompting cautious response

China

U.S. tariff hike pressures Brazilian steel exports, prompting cautious response

2025-06-05 02:05 Last Updated At：14:57

The United States' decision to double tariffs on steel and aluminum imports to 50 percent has placed significant pressure on Brazilian exports, prompting cautious responses from both industry leaders and government officials.

Last year, Brazil sent nearly 4 million tons of steel to the U.S., its biggest buyer for the commodity.

One Brazilian trader emphasized disarray in the industry in response to the tariffs, though he maintained that opportunities for gains may persist in some sectors.

"We are living in chaos. As I said before, it's the uncertainty, because all the players, either the seller or the buyer, and we as traders are in the middle, we have to be very careful with the volatility that occurs due to sudden changes of rules. So it's a moment to be very cautious with the management and risk of the business," said Bruno Russo, partner from Timbro Trading.

The Brazilian government is trying to find a balance between defending national industries and preserving diplomatic ties with a critical trade partner.

With exports to the U.S. under pressure, Brazil is now looking for other markets, while still hoping to secure a partial exemption through negotiations with the U.S.

"We can't afford to lose key partners like the United States, which is an important market for Brazil. So at this moment, we see the government proceeding cautiously — keeping dialogue open and trying to obtain some flexibility in the tariff increases applied to Brazilian products," said Alexandre Uehara, professor of international relations at Brazil's Higher School of Advertising and Marketing (ESPM).

U.S. President Donald Trump announced on May 30 that he plans to double tariffs on steel and aluminum imports to 50 percent, a move aimed at further shielding the domestic industry from foreign competition.

The Trump administration imposed sweeping 25 percent tariffs on all steel and aluminum imports on March 12, drawing sharp criticism from the U.S. auto industry. Canada responded with immediate retaliatory measures, while the European Union also announced counter-tariffs but ultimately withdrew them.

Nicaraguan FM warns of militarism revival

Nicaragua's co-foreign minister Valdrack Jaentschke has warned that militarism must never be allowed to rise again, as Japan's recent moves to lift its arms export ban and revise the pacifist Constitution continue to draw international concern.

This year marks the 80th anniversary of the opening of the Tokyo Trials, where Japan's Class-A war criminals from World War II were brought to justice.

In an interview with China Global Television Network (CGTN), Valdrack Jaentschke voiced his concern that today's world order is being undermined by interventionism and other challenges.

"It is necessary for us to remember that after the end of World War II, countries worked hard to build a new international order based on international law. However, regrettably, more than 80 years later, we are seeing that this once explored and attempted order is being challenged by interventionism, a confrontational mindset, and tendencies like 'might makes right.' These are precisely the conditions that gave rise to fascism and militarism in the past, which ultimately led to the tragedy of World War II," he said.

He said the international community has a responsibility to pursue a new international order -- one fundamentally grounded in peace.

"Looking back at the history more than eight decades ago and comparing it with today's reality, it is our responsibility to recognize that the world should, and must, build a new international order that is more just, fairer, rooted in international law, based on a logic of mutual benefit and shared success, and fundamentally grounded in peace," said the minister.

"Today, as we revisit the Tokyo Trials, it is meant to remind the world that such a tragedy must never be repeated -- and that we must do everything in our power to prevent it from happening again. We must stop that dark world -- born from militarism, interventionism, and fascism -- from ever returning," he said.