By Brazil Stock Guide – Brazil’s Federation of Industries of the State of Minas Gerais (Fiemg) said it is monitoring “with attention” the United States’ decision to expand 50% tariffs to a wider list of steel- and aluminum-related goods. The move—announced on Aug. 19, 2025, by U.S. President Donald Trump—adds 407 consumer items to the list. The report was first published by Investing.com.
Fiemg emphasized that the action is not targeted specifically at Brazil but warned of material trade damage, notably for Minas Gerais, a steelmaking hub. Citing the U.S. policy shift, the group said: “The Brazilian steel sector is already among the most affected by U.S. tariff policy, and in Minas Gerais, steelmaking is strategic for the state’s export agenda.”
Trump in June doubled the import tariff rate on steel and aluminum to 50% from 25%. Extending the levy to downstream items raises cross-sector exposure, Fiemg said. “The extension of the tariff to products that use steel and aluminum as inputs heightens concern, as it broadens the negative effects on other exporting sectors,” the federation noted. “The announced list corresponds to approximately 10% of Brazil’s exports to the United States between 2020 and July 2025, and to 3% of Minas Gerais exports.”
Automotive supply chains face particular strain. “Fiemg considers it essential to monitor the effects on strategic sectors, such as automotive, which already faces 25% tariffs and may see certain items, such as auto parts, moved to the new 50% rate,” the entity said. It added that the policy could “go beyond steelmaking, significantly affecting other segments relevant to the Minas Gerais and national economy, in a context that is already challenging for global trade.”
Vice President and Development Minister Geraldo Alckmin said separately that the U.S. Commerce Department decided the steel and aluminum content embedded in Brazilian industrial goods will follow the global 25% rule rather than the 50% rate—an adjustment he said could ease pressures by about $2.6 billion. In 2024, Brazil exported $4.1 billion (5.8 million tons) of steel to the U.S., according to data cited from Bradesco (BVMF:BBDC4).