Despite a recent Supreme Court ruling against broad tariffs, specific products like steel and aluminum will continue to be taxed under Section 232 for national security reasons.
The recent decision by the United States Supreme Court has invalidated broad tariffs imposed by former President Donald Trump; however, specific tariffs on products such as steel, aluminum, and copper remain unaffected. Experts in international trade indicate that these tariffs are upheld under Section 232, which allows for additional duties under the guise of national security. This means that while the Supreme Court ruling has implications for broader tariff structures, it does not alleviate the specific taxes on these metals.
The significance of these tariffs is considerable for Brazilian exports, with Section 232 duties having accounted for 27% of Brazil's exports to the U.S. by the end of last year, amounting to nearly $11 billion. Products including not just metals, but also wood and furniture, are influenced by these tariffs. The situation underscores the complexity of trade relationships, particularly as countries navigate the regulations placed on specific commodities.
Experts like Welber Barral, a consultant and former Secretary of International Trade, highlight that the Supreme Court's ruling does not impact the Section 232 tariffs and leaves a significant portion of the trade subject to these additional fees. This ongoing reality poses challenges for Brazilian exporters and indicates a need for strategic adaptations in approaching the U.S. market, reflecting broader tensions in international trade policy.
