Our partner Camila Tapias spoke to Metrópoles about the steel industry’s concerns about the possibility of new tariffs imposed by the United States.
The sector is waiting for an understanding between the Brazilian and American governments to avoid negative impacts on Brazilian exports.
Camila explains that the possible drop in exports directly affects national steel mills, resulting in a reduction in revenue, an impact on employment and a disincentive to new investments in the sector. In addition, finding alternative markets to sell this production can be a challenge in the short term.
“The 25% tax rate is very high and could have a cascading effect on various sectors. The increase in the cost of steel and aluminum impacts industries that depend on these inputs, such as construction, the automobile industry and the capital goods sector,” explains Camila. “These companies will see an increase in costs, which could lead to prices being passed on to consumers or even a reduction in production and investment.”
Read in portuguese: https://www.metropoles.com/brasil/economia-br/ameacada-industria-do-aco-espera-acordo-entre-governos-lula-e-trump#google_vignette
