United States of America Government Resumption of Tariff Announcement
The Latin American Steel Association (Alacero) receives with surprise and concern the decision announced today (December 2nd) by the president of the United States, Donald Trump, to restore the import tariffs over steel and aluminum from Brazil and Argentina with the argument that these countries have led to a massive devaluation of their currencies, under the assumption that it is not good for American farmers. We believe that in free trade the currencies fluctuate according to the internal and external scenarios of each country without the manipulation of governments, at least in the cases of Argentina and Brazil.
For our association, representative of the Latin American steel chain, the manipulation of tariffs on important commodities for the economies of the partner countries, in an attempt to solve problems that are clearly outside the original subject of the debate, is a wrong precept against the possibility of reaching joint agreements as countries that have collaborated closely before.
Alacero reinforces that the decision expressed in the president's Twitter message harms the economy of his own country since the steel industry chain in the United States needs steel products that are not always produced internally, depending on partner countries such as Brazil and Argentina. Such positions of the US government in the face of current international trade conflicts bring an even more serious impact to Latin America, whose economies need stability more than ever to strengthen their growth plans for the immediate future.
Importantly, Alacero, together with Argentina, Brazil and other countries of the region, have an active role as strategic allies of the United States of America, in the fight against global steel production overcapacity, integrating the Global Forum of Excess Capacity Steel in the framework of the OECD. Alacero supports the Chambers of Argentina and Brazil so that the problem is tackled together with the respective governments at the impending Mercosur Summit on December 5. ••