Brazilian metal producers worried about impact of U.S. tariffs on mining, steel, aluminum

Wenhua Finance compiled

World Aluminum Network July 14, 2025 10:54 Henan

Brazilian metal producers are worried about the impact of the US-Brazil trade conflict on 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 from August 1, Brazilian President Lula said in an interview on July 10, local time, that Brazil would negotiate tariffs with the United States and would take reciprocal countermeasures if they were ineffective. Brazil is the second largest steel supplier to the United States and the world's largest steel exporter. According to the United Nations Comtrade database, Brazil's steel exports to the United States will be worth $5.72 billion in 2024. At the same time, the United States is the main supplier of Brazilian coal (mainly metallurgical coal used for steel making). According to data from Ibram, the Brazilian Mining Institute, the United States supplied 45.5% of Brazil's total coal imports (3.72 million tons) in the first quarter.

Abal, the Brazilian Aluminum Association, said it was "deeply concerned" about the new US tariff announcement, which brought higher uncertainty and "increased Brazil's risk of trade distortion and diversion... in the context of increased protectionism." The Trump administration issued an executive order in April to prevent tariff "stacking" and products such as aluminum and steel would not be subject to joint tariffs, although Abal was unsure how these tariffs would be combined. The association said that Brazil's aluminum product exports have fallen by about 25% year-on-year in the first half of 2025, "as a direct consequence of the tariffs announced on March 12 and June 4," and further called for a measured diplomatic and commercial response to the current situation. Abal added that more than 90% of primary aluminum produced in the United States may use Brazilian raw materials, including bauxite and alumina.