Brazil is taking a cautious yet strategic approach to the United States’ decision to double its steel import tariffs to 50 percent, according to Marco Pollo Melo Lopes, executive president of the Brazilian Steel Institute (IABR). The move is expected to significantly impact Brazilian steel exports, particularly slabs, which are a critical component for U.S. steelmakers.
Lopes noted that when the U.S. first imposed a 25 percent tariff earlier this year, Brazilian exporters had to adjust both prices and shipment volumes. With the tariff now raised to 50 percent, he anticipates another round of market disruptions.
Slabs—semi-finished steel products that the U.S. depends on due to limited domestic production—make up a large share of Brazil’s steel exports to the U.S. In fact, Brazil was the second-largest supplier of slabs to the U.S. in 2024, exporting over 4.294 million metric tons, behind only Mexico.
In response to the escalating trade tensions, Brazilian President Luiz Inácio Lula da Silva has tasked Vice President Geraldo Alckmin with leading negotiations aimed at establishing a quota system that would allow Brazilian slabs to enter the U.S. market at reduced tariff rates.
President Lula warned that if negotiations fail, Brazil may consider proportional commercial retaliations against the U.S. “We cannot simply accept measures that hurt our industry and our economy without responding,” he stated.
The outcome of these talks could reshape the steel trade relationship between the two nations and influence broader trade dynamics in the Americas.
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