Trump says he will restore tariffs on Brazil, Argentina metal imports- Tweet

Brazil and Argentina will face American tariffs on steel and aluminum, President Donald Trump announced early December 2.

Trump accused both countries of manipulating their currencies to hurt USA farmers, and he paired his action with criticism of the Federal Reserve, notes Bloomberg, which sees the morning moves as significant.

Trump says that by these and other nations deliberately devaluing their currencies, "this makes it very hard for our (manufacturers) & farmers to fairly export their goods", he wrote.

Across the country, farm bankruptcies have surged 24% since September 2018, a few months after United States trade disputes with China and other countries led to higher tariffs on key farm goods including soyabeans, cotton and dairy, according to analysis by the American Farm Bureau Federation. "If needed, I can also talk to Trump, I have an open channel with him", he said. The country has been in the grip of a recession for over a year, with the peso in a downward spiral.

He has also urged the US Central Bank to cut interest rates to weaken the dollar. The U.S. government's dollar policy has traditionally been directed by the Treasury Department. The South American nation's steel accounts for about 3.5% of the 110 million tons consumed in the USA a year.

The Brazilian real was little changed at 4.24 per US dollar at 7:30 a.m.in NY.

Steel and iron products are the second biggest Brazil export to the USA, tracking only crude oil and totalling US$2.25 billion between January and October, according to Brazilian government data.

The iShares MSCI Brazil exchange-traded fund, meanwhile, rose 0.4%.

The reinstatement of tariffs will boost US steel prices, benefiting domestic producers, while hurting manufacturers in Brazil.

AK Steel Holding Corp. rose 2.9 per cent in premarket trading at 7:32 a.m.in NY.

The American depositary receipts of Brazilian steelmaker Gerdau rose 0.6%. The company runs plants in the U.S.

Trump imposed 25 percent tariffs on imported steel and 10 percent levies on aluminum imports in March 2018, citing national security concerns, though Brazil and Argentina were granted exemptions.

In August a year ago, he gave South Korea, Brazil and Argentina targeted relief from quotas imposed on inbound steel shipments to protect USA producers.

-With assistance from Shawn Donnan, Courtney Dentch, Mario Sergio Lima, Walter Brandimarte, Jonathan Gilbert, James Attwood and Pratish Narayanan.