The Latin American Steel Association (Alacero) responded today to Donald Trump’s reinstatement of Section 232 tariffs against steel and aluminum imports from Brazil and Argentina, saying that it received the news with “surprise and concern.”
Responding to the allegation that the two countries are manipulating their currency, the association said it believes “that in free trade the currencies fluctuate according to the internal and external scenarios of each country without the manipulation of governments, at least in the cases of Argentina and Brazil.”
The association said, “the manipulation of tariffs on important commodities for the economies of the partner countries, in an attempt to solve problems that are clearly outside the original subject of the debate, is a wrong precept against the possibility of reaching joint agreements as countries that have collaborated closely before.”
Alacero also pointed out that Trump’s decision “harms the economy of his own country since the steel industry chain in the United States needs steel products that are not always produced internally, depending on partner countries such as Brazil and Argentina. Such positions of the US government in the face of current international trade conflicts bring an even more serious impact to Latin America, whose economies need stability more than ever to strengthen their growth plans for the immediate future.”
In Brazil, President Jair Bolsonaro said in a news report that he didn’t see Trump’s decision to reinstall tariffs on Brazilian steel imports as “retaliation.” He said, however, he might call Trump to discuss the matter.
The Brazilian ministries of economy, agriculture and foreign relations sent this week a joint statement about Trump’s decision, stating that they will defend Brazil’s trade interests and are “already in touch” with their counterparts in the US.
“Brazil has acknowledged Donald Trump’s state over the potential imposition of tariffs over the Brazilian steel and is already in touch with (our) peers in Washington to discuss the matter,” the statement said.
“The (Brazilian) government will work to defend the Brazilian trade interests and assure the fluidity of trade with the US, to expand trade and deepen (our) bilateral relationship to benefit both countries,” the statement added.