Trump Reinstates Steel Tariffs on 2 South American Countries

Steel and aluminum tariffs have been reinstated on Brazil and Argentina by the United States, a move initiated by the Trump administration that neither country will be happy about.

Devaluation of Currencies, Talks on the Way?

The South American countries’ “devaluation of their currencies,” has prompted President Trump to reinstate steel and aluminum tariffs on Brazil and Argentina:

Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries. The Federal....

— Donald J. Trump (@realDonaldTrump) December 2, 2019

Statistics do show that both countries’ currencies have not been the most stable, with inflation rising in Argentina and currency value depreciating. Brazil seems to be in a better spot, as Reuters indicates that the inflation in the country is now at its second lowest level since March 1999.

Officials from both countries, however, are quite unhappy with the news. Brazilian President Jair Bolsonaro said in an interview on Brazil’s Radio Itatiaia that he would be seeking discussion with Trump on the matter, saying the two economies cannot be compared.

Dante Sica, Argentina’s production minister, also expressed his desire to sit down and talk with U.S. officials, as Argentina waits for president-elect Alberto Fernandez to take office and take the economy to a new direction.
Both countries have been trying to strengthen their currencies over the last few years, but domestic problems, mainly political and economical, have been speculated to be a key cause for “devaluation.”