The ongoing discussions between the US trade representative and the Brazilian delegation led by Vice President Geraldo Alckmin are expected to finalize an agreement on the importation of Brazilian steel slabs.
Reports from the Brazilian media indicate optimism on the Brazilian side about various alternatives to the 25 percent import tariff imposed by US authorities on steel imports.
These alternatives include either suspending the high tariff or implementing a quota system that would allow a specific volume of imports to be exempt from the tariff, like the arrangement during the first term of President Trump in 2018, which permitted the importation of 3.5 million mt of slabs and billets and 687,000 mt of finished steel products without the high tax.
Additionally, the Brazilian delegation is negotiating the suspension of the general 10 percent import tariff applicable to all countries and imported products. However, there is limited optimism regarding the success of this alternative.
According to the Brazilian steel institute, IABr, the US imported 5.6 million mt of slabs in 2024, as there is no immediate offer of the product in its domestic market, of which 3.4 million mt were shipped from Brazil.