President Trump has threatened to impose tariffs on steel and aluminum imports from Brazil and Argentina.
Countries are taking advantage of the stronger U.S. dollar and devaluing their own currencies, states President Trump.
Brazil which depends on its steel industry is already facing hardship with unemployment rising to 10 percent highs. The U.S. has been importing steel from Brazil to about $2.6 billion in 2018. If tariffs are imposed, it would hurt the Brazilian economy which is already tottering.
This has taken the Brazil President Jair Bolsonaro by surprise.
Argentina also depends on its steel and aluminum of which it exports up to a value of $700 million.
Farmers in the U.S. are affected by the lowering of currency value in both Mexico and Argentina, says President Trump. Manufacturers are hurt by the currency exchange too.
The massive devaluation of currencies of both countries is affecting our farmers, says President Trump. If tariffs are not placed, these countries will take advantage of the strong dollar and devalue their currencies further, he says.
The Treasury Department has been keeping a steady vigilance on major countries looking out for manipulation of currencies.
President Trump had earlier stated in August that China was manipulating its currency. And now Mexico and Argentina have been accused of the same manipulation. The president uses the tariffs, whenever there is a threat to national security. Tariffs are used as leverage to bring in a change in trade policies from other countries.
Tariffs have been a part of President Trump’s foreign policies and he has been using it on many occasions, particularly against China. The U.S. and China have not come forward with a trade deal though many attempts have been taken by officials. A few sticking points continue to hamper talks. Currently, talks to bring in a Phase One deal have been going on and are expected to be completed soon.