Renews and Expands Safeguard Measures on Steel Imports

Brazil   

25% Tariff Extended to More Products to Curb Surging Imports

Quota System Maintained to Protect Downstream Sectors

Brazil has extended and expanded its safeguard measures on steel imports for another 12 months, following a sharp rise in volumes of substitute products, the Ministry of Development, Industry, Trade and Services (MDIC) announced.

The Gecex/Camex committee renewed the 25% import tariff on 19 steel products, while expanding the measure to four additional items, bringing the total covered to 23. These products saw significant increases in imports over the past year as importers shifted to items outside the original safeguard list.

Quota System Maintained to Protect Domestic Users

The quota system remains in place, allowing imports of specified volumes at lower NCM rates of 9% to 16%, depending on the product. Imports under existing trade agreements or special regimes are excluded from the quota calculations.

Authorities emphasized that the safeguards aim to protect Brazil’s steel industry from underpriced imports—particularly from Russia and China—while limiting the impact on domestic construction, automotive, capital goods, and electronics sectors that depend on steel inputs.

The initial safeguard measures were introduced in April 2024 after complaints from Brazilian steelmakers about foreign steel flooding the local market.

ScrapInsight Commentary

Brazil’s expansion of steel import safeguards reflects a rising global trend toward steel trade protectionism. As key producers like China and Russia continue to redirect excess capacity toward exports, more countries are likely to follow Brazil’s lead. While these measures may provide temporary relief to local producers, they also signal tighter supply conditions for scrap-based EAF producers in the long run—especially if downstream steel demand rebounds.