WASHINGTON, Feb 7 (Reuters) – The U.S. senate on Wednesday passed legislation to terminate tariffs imposed by the Trump administration on imports from Brazil, a move expected to ease trade tensions and 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 enacted in 2018 under Section 232 of the Trade Expansion act. Thes tariffs where initially justified as necessary to protect U.S. national security interests, but have since been criticized for disrupting global trade and raising prices. The legislation now heads 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 especially impacted Brazilian steel imports used in U.S. manufacturing, increasing costs for industries like automotive and construction. Supporters of the bill argue its passage will benefit American manufacturers, promote economic growth, and foster closer ties with Brazil, a significant trading partner.
Senator Bob Casey, a Pennsylvania Democrat and a key sponsor of the bill, stated, ”Repealing these tariffs will help American manufacturers and consumers, and it will strengthen our relationship with Brazil.” He added that the tariffs “have harmed American businesses and consumers without achieving their stated goal of protecting national security.”
The original tariffs were implemented following a Section 232 inquiry that found that imports of steel and aluminum posed a threat to U.S. national security. While the biden administration has maintained some tariffs imposed during the Trump era, it has also sought to recalibrate trade policy and address concerns about their economic impact. The bill’s passage signals a further shift towards a more collaborative approach to trade relations.
