Brazilian miners warned of potential $1 billion in tariff pain
The Brazilian mining industry is warning of dire economic consequences if the government resorts to reciprocal tariffs in retaliation for US President Donald Trump’s threatened 50% levy starting Aug. 1.
The sector would incur as much as $1 billion in additional costs if Trump follows through on his threat and the Latin American nation adopts such countermeasures, said Raul Jungmann, head of Ibram, a lobby group that represents companies accounting for 85% of Brazil’s mineral production.
Brazilian miners rely on US manufacturers for heavy equipment such as excavators and the mammoth dump trucks that can haul 100-ton loads. Meanwhile, the US accounts for only 3.5% of Brazilian mineral exports, he noted.
“This would represent additional costs of around $1 billion per year” for Brazilian miners, Jungmann told journalists Monday. “Retaliation and reciprocity worry us much more.”
Jungmann’s comments followed a virtual meeting with Vice President Geraldo Alckmin.
Brazilian mining executives are considering engaging US companies in talks to help push the Trump administration to the negotiating table, Jungmann said.
(By Mariana Durao)
{{ commodity.name }}
{{ post.title }}
{{ post.date }}
Comments