⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Biden promised Bolsonaro U.S. would reconsider tariffs on Brazil steel -sources

Published 06/10/2022, 08:08 AM
Updated 06/10/2022, 05:36 PM
© Reuters. U.S. President Joe Biden holds a bilateral meeting with Brazil's President Jair Bolsonaro during the Ninth Summit of the Americas in Los Angeles, California, U.S., June 9, 2022. REUTERS/Kevin Lamarque

By Lisandra Paraguassu

LOS ANGELES (Reuters) -U.S. President Joe Biden has promised his Brazilian counterpart Jair Bolsonaro the United States will reconsider tariffs levied on Brazilian steel as they met on Thursday, two Brazilian government sources said.

Although no decisions were made, Bolsonaro left the meeting with a promise from Biden that the issue will be analyzed in meetings between the two countries in the coming months.

"President Biden said he had no details on the issue right now, but would check in and the matter would be taken up with the technical teams of the two countries as soon as possible," one of the sources said.

The subject was discussed during the private meeting between the two presidents on Thursday, where only the Brazilian chancellor, Carlos Franca, and U.S. Secretary of State, Antony Blinken were also in attendance.

"We have had signs that this issue must be addressed. The truth is that the one who is benefiting from this tariff now is Russia," said the other source. "The expectation is that this will be resolved quickly."

Biden and Bolsonaro were at the Summit of the Americas in Los Angeles in what had been expected to be an "awkward" meeting.

The quotas for Brazilian steel imports were created in 2018 during Donald Trump's administration and establish that Brazil has the right to export part of the product without import taxes, but the Brazilian government wants a return to the previous policy, under which there were no taxes.

At current values, Brazil is entitled to export a quota of 3.5 million tons of steel without the tariff. According to sources Reuters spoke to, Brazil currently exports quantities close to the current quota to the United States, impeding the expansion of Brazilian business.

© Reuters. U.S. President Joe Biden speaks with Brazil's President Jair Bolsonaro and Colombia's President Ivan Duque as they arrive for a family photo during the Ninth Summit of the Americas in Los Angeles, California, U.S., June 10, 2022. REUTERS/Kevin Lamarque

Aco Brasil, a lobby group for steel producers, expects the revision of the quotas "to happen this year," said the group's chief executive Marco Polo de Mello Lopes.

Steelmakers were waiting for Bolsonaro and Biden to meet to start negotiations for the revision of the quotas, otherwise it would be "unthinkable if the relationship was under stress," Lopes said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.