American Tariffs Deal Heavy Blow to Brazil’s Aluminum Industry

The United States recently hit Brazilian aluminum with high tariffs, raising import fees to 50% for most products starting August 2025.

This move, confirmed by the Brazilian Aluminum Association (ABAL) and official trade data, puts a major economic strain on Brazil’s aluminum industry and unsettles the long-standing trade relationship between the U.S., Brazil, and Canada.

Aluminum is not just any metal in Brazil. It supports thousands of jobs and forms a major piece of the country’s exports. Last year alone, the U.S. bought over $770 million worth of Brazilian aluminum, making it Brazil’s third biggest customer for this product.

With the new 50% tariff, about a third of Brazil’s aluminum exports to the U.S. are expected to dry up. The direct losses could reach $210 million (about R$1.15 billion) this year, a figure verified by ABAL.

In just the first half of 2025, exports of aluminum affected by tariffs dropped by 28%, showing the immediate, real-world impact on Brazil’s industry.

Not all items get taxed—some raw materials like alumina avoid the new fee—but most finished goods and processed minerals, like bauxite, are now too expensive to sell competitively in the U.S.

American Tariffs Deal Heavy Blow to Brazil’s Aluminum Industry

than 1.3 million tons of alumina to the U.S. every year, which is crucial for making nine out of ten tons of American-made aluminum.

Many U.S. and Canadian factories depend on this flow. If Brazilian suppliers disappear, costs rise, and manufacturers could struggle with shortages, not just in metals but in downstream products like cars and machinery.

Behind the numbers, there’s a bigger story. Brazil’s government has already threatened to respond—a sign that broader trade tensions could worsen. These tariffs show how fast political decisions can hurt everyday workers and global supply chains.

This isn’t just an American or Brazilian problem. Millions of jobs and billions of dollars move across borders in this business, and sudden changes leave everyone exposed.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.