Tariffs on Brazilian steel imports to the United States have a low impact in volume, but high in value.

In 2024, Brazil exported $2.911 billion worth of steel to the U.S. market. These shipments cover only products on which the U.S. imposed a 25% global tariff effective March 12, 2025.

Brazilian steel imports to the United States

On February 10, 2025, President Trump announced new measures on steel and aluminum imports. He issued two proclamations: Adjustment on Aluminum Imports and Adjustment on Steel Imports. These modify the tariffs imposed in 2018 under Section 232 of the Trade Expansion Act of 1962.

First, all country-by-country exemptions were eliminated. In addition, the product-specific exclusion process and all General Approved Exclusions (GAE) will be terminated. The aluminum tariff was also increased from 10% to 25%. In addition, more steel and aluminum products were included under this measure. Finally, a new exemption process was established for derivative articles made from “cast and cast” steel and “cast and cast” aluminum in the USA.

Brazil does not appear in the ranking of the top 10 exporters to the United States, nor does it appear in the ranking of the top 10 exporters of steel or aluminum derivatives to the U.S. market in 2024.

Relative damage

Brazil’s Ministry of Finance stated that tariffs on iron, steel and aluminum would have a limited impact on total exports. In 2024, these products accounted for only 1.9% of the total value exported by Brazil. However, they accounted for 40.8% of the value of Brazilian exports of these metals to the United States.

Therefore, a 25% tariff imposed by the United States would significantly affect the metallurgical industry. Even so, its effect on total trade and Brazilian GDP would be small. In addition, Minister Fernando Haddad stated that the economic team will continue to monitor U.S. trade measures and evaluate the bilateral relationship to ensure reciprocity.