Temer: Brazil may appeal against US tariffs on steel and aluminum

Brazilian President Michel Temer said the country may appeal the US decision to increase tariffs on imported steel and aluminum. Temer spoke at the opening ceremony of the World Economic Forum for Latin America on Wednesday (Mar. 14), in São Paulo.

The curbs have a direct impact on Brazilian exports, since the US is one of the country’s main trade partners. Temer noted that caution is advisable when dealing with ties with the US, and said he was likely to phone President Donald Trump to talk about the matter.

“The steel issue is indeed alarming. Under international commercial treaties, tariffs may vary from zero to 4.5%, but tariffs soared 25% for steel and 10% for aluminum. Clearly we should address this topic very cautiously,” Temer declared.

Temer was accompanied by Brazil’s Foreign Ministry Aloysio Nunes, and said he did not rule out resorting to the World Trade Organization (WTO) to appeal against the tariffs.

Nonetheless, the president said that the country will first encourage Brazilian companies exporting steel to US firms to work “in cooperation with the US Congress to try to change this formula.”

“If we don’t come to a solution that’s friendly and quick, so to speak, we’ll resort to the World Trade Organization—but not unilaterally, not just Brazil, but all of the countries that faced losses stemming from the implementation of this measure. This joint action will surely bring more power to the move,” he stated.

Temer was also questioned about the country’s pension reform. He restated that he may attempt to resume deliberations on the constitutional amendment changing the rules governing pensions in Brazil later this year, maybe in September or October, when he plans to bring the federal intervention currently being conducted in Rio de Janeiro to an end.

Translated by Fabrício Ferreira