50% Tariffs on Steel and Aluminum Take Effect in the U.S.; Understand the Impacts for Brazil

The increase in tariffs on imports of steel, aluminum, and related products in the United States takes effect this Wednesday (June 4). The charges, previously at 25%, have now been raised to 50% under a decree signed by President Donald Trump. The measure affects Brazil.

In the decree, the U.S. government states that the purpose of the tariffs is to safeguard national security. The United Kingdom, which recently reached a trade agreement with the U.S., is the only exception: it will continue to face 25% tariffs.

The new decree confirms Trump’s promise made last Friday (May 30). On social media, he had announced his decision to double the rates, arguing it would “further protect the American steel industry.”

“This will be another great dose of good news for our wonderful steel and aluminum workers. Let’s make America great again,“ he wrote when announcing the measure.

The move comes as the U.S. seeks more favorable trade negotiations with the countries affected by Trump’s tariff hike imposed in early April. Although the tariffs were partially suspended, they are set to be fully reinstated on July 8—and have served as a bargaining tool in Trump’s efforts to secure better trade deals.

The 25% tariffs on steel and aluminum imports into the U.S., implemented during Trump’s presidency, have been in effect since March 12.

The measure directly impacted the steel industries of major U.S. trade partners, such as Canada and Mexico. Brazil, the second-largest supplier of steel to the U.S., was also affected.

Experts interviewed by g1 say one of the main consequences of the tariffs is a reduction in exports to the U.S. Additionally, the situation presents new challenges for the steel sector, which may be forced to redirect its sales or, in the long term, cut production.

For companies with factories in Brazil, the effects vary. On one hand, those heavily focused on external markets tend to suffer more from declining exports. On the other, companies focused more on the domestic market feel less direct impact—but still face the challenge of potentially increased supply in the local market, which could pressure prices and reduce profit margins.

Contacted by g1 for comment on the new measure, the Brazil Steel Institute (Instituto Aço Brasil), which represents Brazilian steelmakers, declined to respond. In a statement published in March, when the 25% rate took effect, the organization expressed confidence in continued dialogue between the Brazilian and U.S. governments.

Impacts for Brazil

In terms of volume, Brazil is the second-largest supplier of steel to the U.S., according to data from the U.S. Department of Commerce. In total, 4.1 million tons were exported to the country in 2024.

Only Canada exported more, with 6 million tons shipped to the U.S. Mexico ranked third, with 3.2 million tons.

Overall, about 25% of the steel used in U.S. industries is imported. For aluminum, where Canada is also the top exporter, that share rises to 50%.

Source: G1

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