Brazil hikes import tariffs on steel products

Brazil’s Foreign Trade Chamber (Camex) raised the import tariffs on several iron and steel products to 25 percent, catering to requests from the trade association Sicetel. The new tariff will be enforced until May 31, 2025.

The tariffs were previously set at varying levels, ranging from 10.8 to 14 percent.

The new 25 percent tariff will be imposed on nails, tacks, and similar articles of iron or steel; scaffolding, frames, and shoring materials; galvanized grids and nets, welded at the intersection points, made of iron or steel wires, and wires of other steel alloys, among other products.

Back in May, Camex had already extended antidumping restrictions on steel products specifically coming from China. The move came after authorities observed an attempt by steel importers to circumvent previous restrictions by purchasing products with slightly lower levels of chromium and nickel, but which were essentially the same goods as those under restrictive tariffs, according to the Trade and Industry Ministry.

Brazilian steel producers claim that dumping practices from China are creating existential threats for Brazilian steel producers. They say the loss of market share to Chinese competitors led to 40 percent idle capacity, shrinking profits, and several layoffs in the earlier months of 2024.

Camex also decided yesterday to increase its import tariff on fiber-optic cables to 35 percent, complying with a request from the Brazilian affiliate of Prysmian, a multinational manufacturer headquartered in Italy. The new tariff will be applied for six months.

Conversely, Camex decided to lower import tariffs on some products, namely blender motors, acrylonitrile (a compound for making plastics), polyester threads for tires, and others.

At the request of Syngenta, a biotech company, Camex also renewed the 3.8 percent tariff on pesticide glyphosate for an additional six months. The tariff had been previously set at 10.8 percent. Glyphosate is used widely on crops such as coffee, corn, rice, sugarcane, and grapes.