The US has decided to cut down on its imports of Brazilian steel according to a proclamation issued by the Trump administration late on August 28.
The proclamation indicated that a contraction in the US steel market during the year led the government’s decision to revisit and amend its position on steel imports from the South American country. The US had first imposed tariffs and reduced imports from Brazil under Sec 232 in 2018. The restrictions were recently lifted after successful negotiations between the two countries.
However, in last week’s proclamation, the Trump administration noted that steel shipments by domestic producers had reduced by 15pc in the first six months of 2020 compared with the same prior-year period. Moreover, shipments of the material in April and May were 30pc below April-May 2019 levels.
Brazil is the second-largest steel exporter to the US and the largest exporter of semi-finished steel products to the country. Although the US will reduce its imports, the proclamation said that it would not reimpose the Sec 232 tariffs on steel from Brazil.
The Brazilian foreign ministry reacted to the proclamation on August 29 saying that the reduction was a temporary phase and that the country remained confident that these restrictions would be lifted as soon as the market improved.