On June 3, US President Trump signed an executive order to increase tariffs on steel and aluminum products to 50% starting from 12:01 a.m. Washington time on June 4. This measure doubles the previously set 25% import tariffs on steel, directly impacting Brazil's steel exports to the United States. Brazil is the second largest source of steel product imports for the US, with the exception of the UK, which is not affected by this tariff hike due to a free trade agreement with the US.

Trump stated that this tariff measure would further protect the US steel industry and noted that no one would be able to evade these tariffs. In 2024, Brazil reached a historic high in its share of the US steel product import market, with the US importing $4.677 billion worth of steel products from Brazil, making Brazil the second largest source of steel products for the US.

Brazil accounted for 14.9% of the total US steel product imports, marking a historical high percentage, including semi-finished products of iron or steel and pig iron, capturing a substantial portion of Brazil's steel exports to the US. Following Brazil, the countries in order are Canada (24.2%), Mexico (10.1%), South Korea (5.9%), and Germany (4.6%).

According to statistics from the Brazilian Ministry of Development, Industry, Trade, and Services (MDIC), in 2024, 47.9% of Brazil's steel product exports were destined for the US, making the US the most important market for Brazil's steel. China is the second largest buyer of Brazilian steel products, accounting for 10.7% of Brazil's total exports of such products.

Brazil's Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, has emphasized the need to address Trump's tariff measures through dialogue. He stated that the way to resolve the issue is not through tit-for-tat, but through negotiation for mutual benefit. Brazilian President Lula also stressed the importance of dialogue with the US but did not rule out the possibility of taking retaliatory measures or submitting the case to the World Trade Organization (WTO).