Trade Cases
Brazil Takes Quota on Steel But Tariff on Aluminum
Written by Sandy Williams
May 3, 2018
Brazil says it will agree to quotas on finished and semi-finished steel exports to the U.S. in return for exemption from the 25 percent Section 232 tariffs, according to Inside U.S. Trade. Brazil is the latest country to capitulate to U.S. demands, agreeing to a quota of 70 percent of its three-year average exports of finished steel and 100 percent of exports of semi-finished steel.
“Faced with the decision announced by the U.S., the representatives of the aluminum sector indicated that the less harmful alternative to their interests was to endure the additional tariffs of 10% that were originally foreseen,” the Brazilian Ministry of Industry and Commerce and the Foreign Relations Ministry said in a May 1 press release. “On the other hand, the representatives of the steel sector informed that the imposition of quotas would be less restrictive than the 25% tariff.”
Negotiations were cut short last week by the U.S. after telling Brazil’s foreign and trade ministers that the tariffs would be applied immediately unless the country accepted “restrictive unilateral quotas.”
“They said the decision was made on the eve of a presidential meeting, that the political conditions had changed, and there were no longer the conditions to keep negotiating as we had been,” said Brazil Institute President Marco Polo De Melo Lopes to journalists in a conference call on Wednesday. “Take it or leave it isn’t the way you treat a partner.”
The quotas will reduce Brazilian steel exports to the U.S. by 14.5 percent compared to 2017 levels, according to Inside US Trade and Commerce data.
“Brazilian products do not pose a threat to U.S. national security,” said a joint press release issued by Brazil’s Ministry of Industry and Commerce and the Foreign Relations Ministry. “On the contrary, the industries of both countries are integrated and complement each other.”
“The Brazilian government regrets that the negotiating process has been interrupted and reiterates that it remains open to building reasonable solutions for both parties. Furthermore, it reiterates its conviction that any restrictive measures would not be necessary and would not be justified under any circumstances,” said the release.
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Steel imports slip 10% from August to September
September marked the lowest month for steel imports so far this year, according to preliminary Census data released by the Commerce Department.
Price on trade: Japan could help fund Nippon Steel’s acquisition of U.S. Steel
Earlier this month, Nippon Steel announced that it is applying for subsidies under the Japanese government’s Green Transformation Promotion Act to expand the company’s electric furnace steelmaking capabilities and to convert from blast furnace to electric furnace operations. As we have said before, transitioning from blast furnace- to electric furnace-based steelmaking is a good thing […]
CRU: What will the US elections mean for economic policy?
In this Insight piece, CRU economists explore the possible economic effects of Trump's and Harris' agendas.
Commerce adjusts duties on large OD welded P&T
The US Department of Commerce is conducting annual administrative reviews of antidumping and countervailing duty (AD/CVD) orders on certain imports of steel pipe and tube.
Canada announces remission process for Chinese steel tariffs
The Canadian government announced a remission process for businesses for recently announced tariffs on Chinese steel and aluminum products and electric vehicles .