The new 50% tariffs on steel and aluminum products imported by the United States are aggravating an already complex situation for the Brazilian steel industry, according to Marco Polo de Mello Lopes, executive president of Steel Brazil.
In an interview with CNN Money This Thursday (5), Lopes detailed the challenges faced by the national industry and the possible consequences of these measures.
According to the executive, the global scenario was already challenging due to the excess of installed steel capacity in the world, estimated at about 620 million tons.
“This most recent measure of President Trump only aggravates a situation that, by itself, was quite difficult,” said Lopes.
Despite the concerns, Lopes believes that there will be a new accommodation of the market, similar to what happened after.
He stressed that Brazilian exports to the US market remained, with a reduction of only 10% to 15%.
Impact on the US and possibility of agreement
The President of Steel Brazil stressed that the American need for importing strategic raw materials, such as steel plates, remains.
In 2018, after a commercial offensive during the first Trump administration, quotas of 3.5 million tons for semi -finals were established and about 680,000 tons for finished products.
Lopes emphasized the importance of restoring the agreement that was in force for six years between Brazil and the United States, arguing that it was beneficial for both countries.
“This American import need for this strategic raw material remains, has not changed overnight,” he said.
Internal challenges and global competition
In addition to issues related to the US market, Lopes addressed the challenges faced by the Brazilian steel industry in the global scenario.
He mentioned the concern with imports, which represent 25% of sales of Brazilian plants in the domestic market.
“You don’t compete with a Chinese steel mill, you are up to the Chinese state that aims to occupy the world’s markets,” Lopes warned, emphasizing the need for agile trade defense mechanisms.
The executive concluded by emphasizing the importance of dialogue between companies in the sector and the federal government in the search for solutions and in the defense of the interests of the national steel industry.
He praised the efforts of the ministries involved in the negotiations and the search for alternatives to mitigate the impacts of protectionist measures.
