Trump Backed Down on Claims of Increasing Tariffs over Brazilian Steel
The Threat Was Done On His Official Twitter Account
USA President Donald Trump seemed to have stepped back after a conversation by phone call with Brazilian President Jair Bolsonaro in December 2019. This means that the steel industry in Brazil might have the situation calmed down.
American President’s Twitter Account Might Have a Lot of Effect on People’s Impressions
The threat to impose tariffs over Brazilian steel industry came via Tweeter. It was nothing actually official but the whole industry got worried about the consequences it could have on our previous agreements with the USA. Now it seems that the issue is already solved and it was nothing more than a fright to many. A post on Jair Bolsonaro’s Facebook account has been made in the latest weeks of December stating that:
[…] he decided not to make good on his plan to impose tariffs on our steel / aluminum. Our commercial relations and friendship are getting stronger every day, […]
It Can Mean Good News for the Economy
Though our steel and metal industry isn’t the greatest point of income to the National exportation industry, it surely represents gains in our capacity to commercialize this type of essential product to the USA. Again in his Twitter account Mr. Trump confirmed that he would not be pursuing tariffs for the Brazilian metal industry as he previously have told.
Expectations of Growth in 2020
The iron and steel industry actually have a strong history in Brazil and is on the rise even further over the next years. According to businesses analysts steel factory are still heavily backed by the Brazilian Federal Government. This happens because steel is considered one of the most important materials to promote economical growth for Brazilians.
Let’s check the statistics
According to a survey done back in 2005 Brazil was capable of producing 31.6 million tons of steel. Since then the production is increasing every year in a considerable rate. Actually Brazil is one the the top major steel producing countries in the whole world representing about 2.8% of global steel exhortations annually.
The Industry is Experiencing an Incredible Growth During Latest Years
This incredible amount of production is certainly backed by the most modern technologies that increases the capacity of production in many areas. Though the technologies themselves are mostly imported, the Brazilian capacity of production will definitely put the country in the ranking of the most profitable countries for this kind of industry.
What could be necessary in order to increase Brazilian importance in that sector
The organizations involved in the production of metal and steel in Brazil should pay attention to the following:
- The industry has to attract new investors by keeping the prices low.
- The cost of production of Brazilian steel is economically advantageous so taxation would impair this process.
- There is a supply continuously of essential raw products necessary for the production of steel, iron, coal and other renewable energy sources.
In this article we talked about how the steel and raw metal material production in Brazil is important world-wide and that USA President has withdrew from putting taxes on our industry. Allowing the continuation of our present growth rate. Did you like this post? Don’t forget to follow Ewaider & Co and share this interesting article with all your friends.