In a blog, they said the trade war "may be responsible for five (of the 40 total) House seats lost by Republicans".
U.S. President Donald Trump said Monday he would restore tariffs on U.S. steel and aluminum imports from Brazil and Argentina, surprising officials in the two South American countries and prompting them to seek explanations.
He added that Brazil and Argentina were "presiding over a massive devaluation of their currencies".
"U.S. Markets are up as much as 21% since the announcement of Tariffs [in March 2018]", Trump wrote Monday.
"Their economy is not comparable with ours; it's many times bigger".
Trump said the devaluation of the Argentine peso and Brazilian real harm American interests. "I'm going to call him so that he doesn't penalize us ... and I'm nearly certain he'll listen to us".
2 renewed steel and aluminum tariffs on Brazil and Argentina, a measure aimed to defend USA producers and workers.
The U.S. central bank's policymaking committee holds its next meeting on December 10 and 11. The president was noncommittal when asked if a deal with China was possible this year. Brazil has intervened multiple times in the past month to support its devaluing real.
Trump has long grumbled about the dollar's strength and urged the Fed to abandon decades of precedent and act to weaken the greenback. That has prompted fears that the USA could lead the world into an era of weaponized monetary policy. Analysts said the origin of Trump's decision may lie in the domestic political consequences of his China trade war. As such, it signifies a potential new phase in his trade wars in which foreign-exchange markets are the battleground.
The U.S. has imported about 3.8 million metric tons of steel from Brazil so far this year, most of which are slab, according to U.S. Census Bureau data. The South American nation's steel accounts for about 3.5% of the 110 million tons consumed in the US a year.
The Brazilian real was little changed at 4.24 per dollar at 7:30 a.m.in NY. The excess capacity in steel and aluminum has been a chronic problem for decades and created a destructive ripple effect on US producers and workers.
Shares of US steelmakers rose on Monday, with United States Steel Corp X.N up 4.0% at $13.65 in afternoon trading and AK Steel Holding AKS.N rising 5.8% to $2.92. U.S. Steel Corp. was up 3.8%, and Steel Dynamics Inc. gained 1.4%.
The American depositary receipts of Brazilian steelmaker Gerdau SA, which runs plants in the US, rose 1.4%.
Shares in Brazil's Gerdau SA, Usiminas and Cia Siderurgica Nacional SA were up 0.5 percent, 1.4 percent and 1.5 percent in mid-morning trade, respectively.
"The news is marginally favorable for US steelmakers and marginally negative for Brazil", a Citi report said.
"There is no initiative by the government to artificially devalue the Real, and the decision to tax Brazilian steel as a way to compensate American farmers is a retaliation against Brazil, which is inconsistent with the partnership relationship between the two countries", it said.
Argentina's production ministry said in a statement the country has exported around $520 million in steel and aluminum to the United States so far this year after exporting $700 million in 2018.
As for the new proposed tariffs on French goods, US trade representative Robert Lighthizer said the administration might investigate digital service taxes in Austria, Italy, and Turkey, too. "And the U.S.is taking in massive amounts of money (and giving some to our farmers, who have been targeted by China)!"