US President Donald Trump surprised the world at the beginning of March by announcing new import tariffs on steel and aluminum.
Even with strong pressure from his adversaries and even his allies, Trump managed to establish a global import tax of 25% for steel and 10% for aluminum.
This was due to the publication of a report by the US Department of Commerce, which concluded that the American steel and aluminum industries were at risk due to imports and that, consequently, national security was threatened.
The term national security is more important to Americans than anything else. According to Section 232 of the Trade Act of 1962, no approval other than presidential approval is required when the measure concerns national defense.
It is important to emphasize that, as this type of justification is rarely used, the current situation can be considered a first test of its effectiveness and possible consequences for the USA on the international scene and within the WTO (World Trade Organization).
Our economists prepared an analysis together with analysts from Cadarn Consultoria on the consequences that these new protectionist measures taken by Trump will bring to the US and Brazil, which you can read below, by clicking here.