Brazilian steel industries are requesting a 25% tariff on Chinese steel following Trump's tariffs.
The sector argues that Chinese subsidies weaken competitiveness and advocates for measures to protect against imports.
247 - Representatives of the Brazilian steel industry are asking the federal government to impose a 25% tariff on steel imports from China, in response to the increased tariffs imposed by US President Donald Trump. The measure aims to protect local production, which could lose competitiveness in the new international landscape where Chinese steel has become a growing threat to Brazilian producers.
The request from the industrialists will be discussed at a meeting with the vice-president and Minister of Development, Industry and Commerce, Geraldo Alckmin (PSB), later this month. According to industry representatives interviewed by CNN BrazilChina is said to have adopted practices similar to "dumping," as the Chinese government subsidized steel production as a way to maintain jobs amid a slowdown in the country's construction industry.
With weakened domestic demand, China began exporting steel at extremely low subsidized prices, which, in some cases, means the product is offered below the cost of production in Brazil. This resulted in a significant increase in Chinese steel imports, with values jumping from less than US$100 million in the early 2000s to more than US$2 billion in 2022.
Although an import quota system was adopted last year to try to balance competitiveness, manufacturers argue that the quotas are not enough to solve the problem in the face of the new scenario.
However, the claim made by Brazilian industries is refuted by representatives of Chinese commerce. Charles Tang, president of the Brazil-China Chamber of Commerce and Industry, stated that subsidies to the Chinese steel industry have not existed for years. According to him, additional taxation on Chinese steel would only harm Brazilian consumers, as the measure would increase the price of manufactured goods in the country and boost inflation. Tang emphasized that the low price of Chinese steel on the world market is due to China's advanced technology and lower operating costs, and not to government subsidies.
According to him, the "Brazil cost" is the main factor impacting the competitiveness of Brazilian industry, pointing to high taxes and logistical problems that hinder national production. "Brazilian industry is efficient up to the farm gate, where it faces a cascade of taxes, lack of efficient logistics, among other [problems] that fuel the Brazil cost," Tang emphasized, according to the report.
