President Donald Trump is cutting the cap on allowable steel shipments from Brazil, citing a slump in the U.S. market.
In a proclamation issued late Friday, Trump amended a previous decision under the so-called Section 232 national security powers to lower the cap on allowable imports. The limits were set in 2018 as part of a deal between the nations to avoid tariffs that Trump applied to other countries.
Trump cited a slumping American steel market, which has only accelerated amid shutdowns spurred by the coronavirus pandemic.
“Imports from most countries have declined this year in a manner commensurate with this contraction, whereas imports from Brazil have decreased only slightly,” he said in the proclamation.
For the remainder of 2020, the U.S. will lower the cap “applicable to certain steel articles imported from Brazil,” according to the proclamation, which didn’t specify which ones. The U.S. will also allow exemptions in certain cases. The new limits come after talks with Brazil, which faced the threat of a 25% tariff.
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