WASHINGTON, Feb 7 โ(Reuters) – The U.S.โค senate on Wednesday passed legislation to terminate tariffs imposed byโค the Trump administration on โคimports from Brazil, a move expected to ease trade tensionsโค andโค lower costs for American businesses and consumers.
The bipartisan bill, approved by unanimous consent, aims to revoke the 25% tariffs on Brazilian steel and aluminum imports enactedโข in 2018 under Section 232 of the Trade Expansion act. Thes tariffs where initially justified as necessary โฃto protect U.S. national security interests, but have since been โcriticized for disrupting global trade and raising prices. The legislation now โheads to the House of representatives for consideration.
The action comes as the Biden administration seeks to strengthen relationships with key partners in Latin america and address supply chain vulnerabilities. The tariffs had โespeciallyโข impactedโข Brazilian steel โimports usedโ in U.S. โคmanufacturing, increasing costs forโ industries like automotive and construction. Supporters of the bill argue its โpassage will benefit American manufacturers,โ promote economic growth, and foster closer ties withโ Brazil, a significant trading partner.โ
Senator Bob โฃCasey, a โPennsylvania Democrat and โคa โkey sponsor of the bill, stated, โ”Repealing these tariffs will help American manufacturers โand consumers, and it will strengthen our relationship โwith Brazil.” He added that the tariffs “have harmed American businesses and consumers without achieving their stated goal of โฃprotecting national security.”
The original tariffs โwere implemented following a Section 232 inquiry that โขfound thatโค imports of steel and aluminum posed a threat to U.S. national security. While the biden administrationโค has maintainedโ some tariffs imposed during theโ Trump era, itโ has also sought to recalibrate trade policy and address concerns about their economic impact. The bill’s passage signals a furtherโค shift towardsโค a more collaborative โapproach to trade relations.
