WASHINGTON, D.C. / BRASÍLIA – April 21 — Negotiations between the United States and Brazil on steel imports are nearing a breakthrough, with both sides reportedly close to finalizing a deal on semifinished steel products, particularly slabs.
The talks involve the U.S. Trade Representative's office and a high-level Brazilian delegation led by Vice President Geraldo Alckmin. Sources from Brazilian media suggest growing optimism over finding an alternative to the current 25% tariff on steel imports imposed by the U.S.
Proposed alternatives include either suspending the existing tariff or reinstating a quota system, similar to that used in 2018, during the first term of former President Donald Trump. That arrangement allowed Brazil to export 3.5 million metric tons of slabs and billets and 687,000 metric tons of finished steel products to the U.S. tariff-free.
Additionally, Brazil is pushing for the suspension of the general 10% import tariff applied to all countries and product categories. However, insiders say there is less optimism around the likelihood of success for this broader exemption.
According to data from the Brazilian Steel Institute (IABr), the U.S. imported 5.6 million metric tons of steel slabs in 2024, with Brazil accounting for 3.4 million metric tons of that total—over 60% of U.S. slab imports. The high volume underscores Brazil’s key role in meeting U.S. steel demand, especially as domestic supply remains constrained.
The deal, if finalized, could provide significant relief to Brazilian steelmakers while offering the U.S. steel industry a stable source of imports without disrupting current market dynamics.
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