The Brazilian steel institute, IABr, reported the surprise decision of the US government to impose a 25 percent import tariff for all steel products, independently of origin, which in Brazil's case, cancels an agreement established in 2018, during the first term of the Donald Trump administration establishing procedures for the import of the Brazilian steel.
On that occasion, the US and Brazilian governments agreed on steel export quotas, covering 3.5 million mt of semifinished products (basically slabs) and 687,000 mt of rolled products without the 25 percent import tariff.
This procedure gave flexibility to the previous decision to impose a 25 percent import tariff for steel products, covering not only the interests of Brazil in accessing the US market, but also the interest of the steel industry in the US, which depends on the Brazilian slabs.
According to the institute, in 2024, the US imported 5.6 million mt of slabs, as there was no immediate offer of the product in its domestic market, of which 3.4 million mt were shipped from Brazil.
During the period, the quotas were not increased for slabs or rolled products.
The institute mentioned, apart from the US statement of February 10, there is no possibility of circumvention, to the US, of steel products shipped from Brazil, but instead originating from other countries.
The institute concluded by saying that IABr and its associates are confident that a dialog will be established between the US and Brazil, as an alternative to maintain the flow of steel products to the US under the basis agreed back in 2028, “for understanding that the imposition of a 25 percent import tariff will not benefit the US or Brazil”.