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Brazil pushes back as US tariff hike hits steel, aluminum exports

China

China

China

Brazil pushes back as US tariff hike hits steel, aluminum exports

2025-06-08 23:36 Last Updated At:06-09 02:27

Since the United States raised tariffs on imported steel and aluminum to 50 percent on June 4, Brazil's government and manufacturers have been pushing back, while small and mid-sized enterprises are already feeling the pressure.

At a plant in the Brazilian state of Sao Paulo, 20,000 car hoods -- along with other parts -- are produced every month. Most are sold in the domestic market, but the company, Centauro, founded in 1970, also exports to 20 countries, mainly across Latin America.

The auto parts sector is a good example of an industry where steel and aluminum are essential materials.

Companies like Centauro have been keeping a close and increasingly concerned eye on the tariff war launched by the United States.

Brazil exports billions of dollars’ worth of steel and aluminum to the United States each year. The government says the U.S. tariffs are misguided and unjustified, and officials warn that the impact on companies -- both large and small -- is already being felt across the industrial sector.

Centauro's owner is also the president of Brazil's National Association of Car Parts Makers, Anfape. He says their biggest concern now is rising competition at home, as international steel products once destined for the U.S. are being redirected to other markets, including Brazil.

"We realize that there will be an oversupply of all types of globally produced inputs and products that were previously consumed by the U.S., and that various other countries will now be competing for those markets," said Renato Fonseca, president of Anfape.

According to the national development agency Sebrae, small and mid-sized companies account for nearly half of Brazil's industrial GDP.

The president of Brazil’s Union of Small and Medium Industries (Simpi) said the group’s members lack the leverage that global steel giants have to protect their interests.

"All of industry, directly or indirectly, depends on aluminum, steel, or both, as well as other raw materials. Whether it's equipment, facilities, or the product itself," said Josef Cury, the president of Simpi.

Brazil is still trying to negotiate with the United States for exemptions on at least part of its steel exports. But even if those talks succeed, the ripple effects of the tariff war are already moving through the country's supply chains and may be difficult to avoid.

Brazil pushes back as US tariff hike hits steel, aluminum exports

Brazil pushes back as US tariff hike hits steel, aluminum exports

China unveiled a large wind-assisted propulsion system for ships in the coastal city of Dalian, northeast China's Liaoning Province, on Friday, marking a major leap forward for the country in the field of high-end vessel marine environmental protection equipment.

The wind-assisted propulsion system - rotating sail system (WAPS-RSS), is developed by Luoyang Ship Material Research Institute of China State Shipbuilding Corporation Limited (CSSC).

The system's rotor has diameter of 5 meters, is 35 meters high, and weighs 150 tons.

Experts say that the system can efficiently capture wind energy while the ship is sailing, providing additional thrust for the vessel.

On average, it can save fuel consumption by 5 to 25 percent for large ocean-going vessels, and lower carbon emissions accordingly.

It relies on the Magnus effect, which is much like a loop in table tennis, featuring a rapidly spinning sphere that causes the surrounding air to rotate. Pressure decreases on the side with faster airflow and increases on the side with slower airflow, creating a lateral pressure difference that generates lateral thrust.

"Standing on the deck, the powerful thrust generated by its rotation assists the ship's sailing. Our system - the world's largest rotary sail - reaches a maximum rotational speed of 180 revolutions per minute and can generate a maximum of 355 kilonewtons of thrust. Additionally, the system's intelligent control integrates multiple sensors to detect real-time wind and ship conditions. Through smart algorithms, it automatically adjusts to maintain optimal performance at all times, maximizing the utilization of wind energy," said Guo Yu, vice president of SunRui Marine Environment Engineering Company Limited under Luoyang Ship Material Research Institute.

Not only does the system's performance meet international advanced standards, but the project team has also overcome a series of engineering challenges, including the fabrication of giant composite structures, complex system integration, and intelligent coordinated control.

Compared with mainstream international technological approaches, it offers greater production efficiency and cost advantages.

Currently, the system has secured its first batch of orders and will complete actual vessel applications as scheduled.

China unveils large wind-assisted propulsion system for ships

China unveils large wind-assisted propulsion system for ships

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