Part 4/7:
While tariffs are intended to protect national interests, economic theories consistently argue that they ultimately diminish trade and harm consumers. For Brazil, the 25% tariff on steel and aluminum will likely lead to decreased exports to the US.
The broader implications involve the Brazilian steel sector struggling as a consequence of these tariffs. Lula, however, appears to be aiming to frame his conflict with Trump as a national struggle, positioning himself as a defender of Brazil’s economic interests.