Brazilian metal producers are concerned that US tariffs will affect the mining and steel and aluminum industries
July 15, 2025
Brazilian metal producers are concerned that the trade conflict between the United States and Brazil will affect the mining and steel and aluminum industries. CCTV News reported that after the United States announced that it would impose a 50% tariff on Brazilian goods starting from August 1st, Brazilian President Lula said in an interview on July 10th local time that Brazil would negotiate tariffs with the United States and take reciprocal countermeasures if they failed. Brazil is the second-largest steel supplier to the United States and the world's largest steel exporter. According to the data from the United Nations Comtrade database, in 2024, Brazil's steel exports to the United States were valued at 5.72 billion US dollars. Meanwhile, the United States is the main supplier of coal to Brazil (mainly metallurgical coal used for steelmaking). According to data from the Brazilian mining research Institute Ibram, the United States supplied 45.5% of Brazil's total coal imports (3.72 million tons) in the first quarter.
The Brazilian aluminium association Abal said it was "deeply concerned" about the new tariff statement from the United States, which brings greater uncertainty and "increases Brazil 's risk of trade distortion and diversion...... In the context of intensified protectionism." The Trump administration issued an executive order in April to prevent the "accumulation" of tariffs. Products such as aluminium and steel will not be subject to joint tariffs, although Abal is not sure how these tariffs will be consolidated. The association stated that Brazil's aluminium product exports had dropped by approximately 25% year-on-year in the first half of 2025, "a direct consequence of the tariffs announced on March 12 and June 4," and further called for a cautious diplomatic and commercial response to the current situation. Abal added that over 90% of the primary aluminium produced in the United States might use Brazilian raw materials, including bauxite and alumina.
