Latin American steel and aluminum exporters face mounting pressure as the U.S. doubles tariffs on imports, with Brazil and Mexico bearing the brunt of the policy shift. The move, announced by the Trump administration last week, has triggered concerns over disrupted supply chains and retaliatory measures.
Brazil, the largest supplier of steel to the U.S. after Canada, saw its Bovespa stock index drop 2.3% following the announcement. "This could cost us 750,000 jobs in manufacturing alone," warned São Paulo-based trade analyst Paulo Cabral, who first reported the developments.
Mexico faces compounded challenges, with the tariffs coinciding with ongoing renegotiations of the USMCA trade agreement. Automotive manufacturers in Nuevo León have already postponed $400 million in planned expansions, according to industry insiders.
The tariff escalation comes as global markets grapple with inflationary pressures, raising questions about its potential ripple effects across Asian economies dependent on Latin American raw materials. Economists suggest the measures could accelerate regional trade realignments, particularly in Southeast Asia's manufacturing hubs.
