The 25% tariffs imposed by Donald Trump on all steel entering the United States have forced Brazilian steelmakers to export steel to the U.S. market at lower prices, according to Jorge Oliveira, CEO of ArcelorMittal Brazil.
Since the U.S. is by far the largest importer of Brazilian steel, these companies’ revenues could decline if the tariffs are not revised in the short term.
Last year, ArcelorMittal Brazil sold 15.1 million tons of steel, with 44.5% going to exports — the main destination being the U.S., which buys semi-finished steel from Brazil. Part of those sales go to ArcelorMittal’s subsidiary in Alabama, which in 2024 purchased R$ 6.7 billion ($1.1 billion) worth of steel from the Brazilian branch.
According to Oliveira, since early March, when Trump announced the tariffs, Brazilian steel sold in the U.S. has been 5% to 7% cheaper.
Before the tariffs, Brazilian steelmakers could export 3.5 million tons of semi-finished steel to the U.S. duty-free. Now, any amount of steel entering the country is subject to a 25% tariff.
As a result, Brazilian companies must now compete on equal footing with countries that can offer more competitive prices.
"We’ve observed an increase in production volume in Southeast Asia, which may eventually include Chinese capital," says Oliveira. "[But despite the drop], the market is adjusting, and there’s no sign that prices will stay at this level. So it’s too early to determine what the market’s modus operandi will be if Brazil fails to secure an exemption."
