Brazil renews and expands safeguard measures on steel imports

The Brazilian government has renewed the safeguard measures on steel imports adopted last year. This is stated in the report of the Ministry of Development, Industry, Trade and Services (MDIC).

According to the decision of the state foreign trade body Gecex/Camex, a 25 percent tariff on 19 types of steel products was maintained, and its effect was extended by four more (for a total of 23). The inclusion of additional items is due to a significant increase in their imports over the past year. This indicates that these products were used as substitutes for those originally covered by the tariff. The measures will be in effect for 12 months.

As in the last year’s decisions, the quota system was preserved to certain import volumes that can be imported into the country at the initial NCM (classification system) rates of 9% to 16%. However, imports made under trade agreements or special regimes were excluded from the calculation.

“The quotas are intended to reduce the impact on sectors that use steel in their production chain, such as construction, automotive, capital goods and electronics,” the statement said.

Brazil first announced these trade protection measures in April 2024, after steel producers complained about cheap foreign steel, especially from Russia and China, flooding the local market.