Beginning August 1, the United States will impose a 50% tariff on all imports from Brazil, according to a letter from President Donald Trump addressed to Brazilian President Luiz Inacio Lula da Silva. The announcement cites the U.S. trade deficit with Brazil as justification, although Brazil has reported a consistent trade deficit with the U.S. since 2009. The letter also raises concerns about the treatment of former President Jair Bolsonaro by Brazil’s Supreme Court, a move seen by some observers as interference in domestic legal affairs.
The tariff is expected to heavily impact Brazil’s steel industry, particularly slab exports, which amounted to 4.29 million metric tons and $2.77 billion in 2024. Major producers, including ArcelorMittal plants in Tubarão and Pecem, and Ternium in Rio de Janeiro, are likely to bear the brunt of the measure.
Brazilian slab prices have already felt pressure from previous U.S. tariffs. Between August 2024 and March 2025, export prices ranged between $530–$540 per metric ton. As of now, they stand at $475 under similar terms. The enforcement of these tariffs signals a deepening of trade friction between the two countries, potentially reshaping bilateral commerce.
