Trump says he will restore tariffs on Brazil, Argentina metal imports: Tweet

02 Décembre, 2019, 20:53 | Auteur: Anatole Charbonneau
  • Trump says he will restore tariffs on Brazil, Argentina metal imports: Tweet

The U.S. President on Monday sent shock waves through Brazil and Argentina, announcing he would restore tariffs on U.S. steel and aluminum imports from the two countries in apparent retaliation for currency weakness he said was hurting U.S. farmers.

Tariffs against the countries were implemented in March 2018 but they were removed about five months later.

But Argentina and Brazil are not happy with the devaluation and both central banks have been intervening to prop up the sliding currencies.

In a tweet posted just after 6 a.m., Trump said the countries have been "presiding over a massive devaluation of their currencies" which he says is bad for American farmers.

Last year, after having accused the two South American countries of weakening their currencies to get an unfair advantage, the USA president imposed a 25 percent tariff on steel and a 10 percent duty on aluminum.

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Argentina is mired in an economic crisis with rampant inflation, deep indebtedness, widespread poverty and a currency that has plunged under the leadership of President Mauricio Macri, who came to power in 2015 with promises to boost South America's second-largest economy. Macri lost his re-election bid in October and will leave office on December 10. The country has been in the grip of a recession for over a year, with the peso in a downward spiral.

Jair Bolsonaro, the Brazilian president, a Right-wing populist seen as a Trump ally, said he hoped the president. The year on year growth in Brazil is 1.01% in the 2Q of 2019.

"This is an unfair relationship". Additionally, Argentina's Foreign Ministry said it will begin negotiations with the U.S. State Department.

Speaking at a business forum, Vice President Hamilton Mourão denied Brazil was manipulating its currency and also said the country should discuss investment projects with China - a relationship initially shunned by the Bolsonaro administration that has lately grown warmer.

Representatives for the Office of the US Trade Representative could not be reached for comment by Reuters News Agency.

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