Unlike the EU, Mexico and Brazil Do Not Retaliate Against US Steel Tariffs

# Mexico and Brazil Take Cautious Approach to U.S. Tariffs on Steel and Aluminum [Seoul=Newsis Choi Hyun-ho] – Amid President Donald Trump's decision to impose a 25 percent tariff on steel and aluminum, Mexico and Brazil, the second and third largest steel exporters to the U.S., have announced that they will not respond immediately, unlike the European Union (EU) and Canada. According to reports from The Washington Post and Reuters on the 12th (local time), Mexican President Claudia Sheinbaum stated in a press conference that Mexico will not retaliate immediately to the U.S. tariffs on steel and aluminum. She added that they would wait for a resolution to be reached in the coming weeks. “We will wait until April 2 and see whether reciprocal tariffs will apply to us from that date,” she said. April 2 is when the U.S. has forecasted the enforcement of reciprocal tariffs. Previously, Mexican Economy Minister Marcelo Ebrard criticized the U.S. steel tariffs as unreasonable. “President Trump’s claims are unfair,” he said last month. “This is because our steel imports exceed exports.” The Mexican Steel Association (Cancero) warned that $2.1 billion worth of Mexican steel exports would be affected by the U.S. tariffs. They called for retaliatory tariffs on U.S. steel. Similarly, Brazil announced that it would not respond immediately. Brazilian Finance Minister Fernando Haddad mentioned that Brazil is not yet prepared to retaliate with tariffs. He emphasized that Brazil’s steel sector does not compete with but cooperates with the U.S. steel industry. Haddad indicated that Brazil would seek negotiations to resolve the current standoff. Moreover, he conveyed that Brazilian President Luiz Inácio Lula da Silva has urged officials to remain calm and avoid overreacting. Despite the non-immediate stance, there was apparent anger among Brazilian officials regarding the U.S. tariffs. The United States represents the largest overseas market for Brazil’s steel industry. Last year, Brazil exported 3.4 million tons of steel slabs, according to the Brazilian Steel Association.