Donald Trump, the president of United States is going to reinstate the tariffs on aluminum and steel which comes from Brazil and Argentina. He was critical of these nations for making their currencies cheap to make it detrimental for the farmers of United States and has once more asked the Federal Reserve for loosening of the monetary policy.
He linked his agenda for trade and his criticism for Fed in a tweet which he sent out as he said that the two countries from South America have presided over a big devaluation of the currencies that is not beneficial for their farmers.
The action of the President has amounted to the retaliation against these two nations which have become major alternative suppliers of agricultural products like soybeans to the Chinese which means that the market share of USA voters is going away. The farmers are major voters and are a major part of the reelection of Donald Trump once the presidential elections happen in the year 2020.
Although the tariffs on steel may crump trade, the countries from South America are much more in profit by selling crops to the buyers in China. In this year’s first 10 months, Brazil has managed to ship over $25.5 billion as farm products like pork and soybeans to China. This has a value of over 10 times of the value iron and steel products which have been sold to the United States.
Jair Bolosonaro who is the president of Brazil has said that he is going to talk to their economy minister before they react to the comments of Trump on the imposition of tariffs. He said that if the need arises, he might also talk to Trump saying that he has an open channel with the US President.