In 2024, Brazil exported to the US an estimated 4.65 million mt of steel products, valued at $3.08 billion, according to the Brazilian foreign trade organization, COMEX.
From these, finished steel products represent only 355,400 mt or $307.1 million, while slabs represent 4.29 million mt, or $2.77 billion.
If the US imposes, as promised, a 25 percent import tariff to finished steel products imported from Brazil, the impact for the Brazilian exporters would be relatively small, as these exports represent about 1.7 percent of their sales in the Brazilian domestic market, where prices are more attractive.
If the import tariff is also imposed to slabs exports from Brazil, the higher cost will affect the consumers in the US, as the steel industry in the US depends on slabs imports to feed part of their rolling operations, currently having Brazil, Mexico, and Canada as the main slabs suppliers.
The minister of finances in Brazil, Fernando Haddad, said today in an interview that the government will address the subject only if the measures are effectively implemented.
This was read by analysts as if he has expectations that slabs will not be included in the list of products that will have the import tariff increased to 25 percent.