Trump Says He Will Restore Brazilian Steel Tariffs

According to US president, the Brazilian is devaluing the Real on purpose, which is not true according to economists

São Paulo

US President Donald Trump announced that the United States would immediately impose tariffs on imports of steel and aluminum from Brazil and Argentina. The decision took the Bolsonaro administration by surprise.

The move is a response to the recent foreign exchange interventions made by both countries, harming American farmers. The Jair Bolsonaro government is accused of devaluing the real, which is not possible in Brazil due to the floating exchange rate regime and is evidence that Trump's move is political.

Brazil's President Jair Bolsonaro.REUTERS/Adriano Machado - REUTERS

In line with the White House, Bolsonaro said he sees no retaliation and, if necessary, will call his counterpart and ask for reconsideration. The industrial sector was also surprised, since aluminum is already subject to surcharge in the US, and steel meets export quotas.

In a statement, the Economy, Agriculture and Foreign Affairs portfolios said they will work on behalf of the "Brazilian commercial interest."

Translated by Kiratiana Freelon

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