CBA redirects aluminum exports to Europe, Latin America after 50% U.S. tariff

With the 50% tariff imposed by the United States on Brazilian aluminum taking effect this Wednesday (August 6), Companhia Brasileira de Alumínio (CBA) has redirected its exports to Europe, Latin America, and the domestic market.

Although only a small portion of its exports were destined for the U.S., CBA President Luciano Alves stated that the tariff required immediate adjustments to the company’s commercial strategy.

“We had a quarter with sales very similar to the first quarter (…) and a healthy sales volume with 91% destined for the domestic market. Of the remaining 9% exported, a portion was going to the U.S., and we have now redirected that volume to other markets, mainly Europe, Latin America, and Brazil,” he emphasized.

The executive acknowledged that the tariff action by the Donald Trump administration is having indirect effects on the supply chain and prices. “The consequence is that we’re already seeing a drop in the European premium, with a large influx of metal arriving from producers who can no longer sell to the U.S., which is pushing prices down,” he observed.

This saturation of alternative markets has led to margin compression and increased competition, including in Brazil, where companies that previously prioritized the U.S. are also seeking new buyers.

“In Brazil, we’re also seeing greater competition from other markets that used to sell to the U.S. and are now looking for alternatives,” he said.

According to Alves, the scenario warrants close attention but is not yet cause for alarm. Regarding potential reciprocal measures from Brazil, the CBA president noted that any effects would be limited, as the company maintains a diversified input sourcing policy.

According to the Brazilian Aluminum Association, the impact of the U.S. tariff on Brazilian aluminum exports could reach R$1.15 billion by the end of 2025. This figure reflects both direct losses already incurred and projected losses following the increase in the import tariff to 50%, as mandated by a new executive order from Trump.

Source: Valor Econômico

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