US Tariff on Steel from Brazil

Brazil is one of the world's largest steel exporters and a significant supplier to the US market. Brazilian steel faces a 60% total tariff: 50% Section 232 + 10% Section 122.

Brazil had previously negotiated a quota arrangement with the US for Section 232 (similar to South Korea), but this arrangement was terminated when steel tariffs were doubled to 50% in June 2025. Brazilian steel now faces the full 50% rate with no quota relief.

Key Brazilian steel exports to the US include: semi-finished steel slabs (used by US mills for further processing), flat-rolled products, steel pipe and tube, and specialty steel grades. Major Brazilian steel producers include Gerdau (which also operates US mills), CSN, Usiminas, and ArcelorMittal Brazil.

The SCOTUS ruling had no impact on Brazilian steel rates — the old IEEPA rate for Brazil was 10%, same as the new Section 122 rate. The 50% Section 232 component (the majority of the tariff) was unaffected by the ruling.

At 60% total, Brazilian steel is at the same tariff level as most other countries (China, Japan, EU members, India). The exceptions that offer lower rates: Australia at 10% (Section 232 exempt), UK at 35% (EPD arrangement), and South Korea (quota arrangement).

For importers sourcing Brazilian steel: Gerdau's US operations (mills in Florida, Texas, North Carolina, and elsewhere) produce domestically and avoid the tariff entirely. This vertical integration strategy is increasingly common — importing semi-finished slabs for domestic finishing can sometimes yield lower effective rates than importing finished products, depending on the HTS classification.

Foreign Trade Zones can provide some relief if the finished product faces lower duties than the steel input (inverted tariff situation).