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| US Brazil Trade Tensions |
Brazil, Mexico, and Colombia Push Back on US Metal Tariffs
Latin American industry leaders are urging diplomatic resolution as US metal tariffs threaten key regional exports. On August 1, a sweeping 50% tariff will take effect, targeting Brazil and possibly impacting steel and aluminium products. Although regulatory details remain unclear, the policy has already sparked concern across Latin America.
Brazil, the US’s second-largest steel supplier, leads opposition through Amcham Brasil. The group reported that eight of Brazil’s top ten exports to the US are already under tariff pressure. These include machinery, auto parts, and wood products. They argue the measures will hurt both economies and call for immediate high-level dialogue.
Industry Groups Warn of Economic Fallout
Manufacturers in Brazil warn that US metal tariffs will harm investments, jobs, and bilateral trade. The machinery association ABIMAQ highlighted the sector’s $3.54 billion in exports to the US and called the tariffs "unjustified and damaging." Similarly, steel slab exporters fear lost competitiveness, with prices holding at $470-480 per tonne as of mid-July.
In Mexico, Amcham called for coordinated USMCA talks, citing risks from new “melt and pour” origin rules. These could block Mexican steel using Brazilian or Russian slabs. Meanwhile, Colombia flagged risk to 237 firms in downstream steel and aluminium, while also warning that politically driven trade tactics set a dangerous precedent.
Regional Diplomacy Urged as Deadline Nears
As the August 1 tariff date nears, US metal tariffs loom large over Latin American trade. Argentina is reportedly negotiating partial exemptions, while Chile and Peru stress the need to uphold existing trade agreements. Amcham Chile pointed to possible long-term instability if arbitrary measures become the norm.
Trump’s broader tariff regime includes steel, aluminium, and strategic materials. The administration has doubled duties and invoked new 50% blanket tariffs on Brazil, creating uncertainty for supply chains across the Americas. Regional chambers are united in calling for de-escalation through economic diplomacy.
ScrapInsight Commentary
The looming US metal tariffs signal rising trade protectionism with direct consequences for Latin American steel flows. If enforced, these tariffs may disrupt scrap and slab markets, particularly in Brazil and Mexico. The outlook hinges on whether diplomacy can curb punitive trade actions and restore market stability before Q4.
