September 28, 2023
US cancels measures against Brazilian steel exports

US cancels measures against Brazilian steel exports

These measures were announced 5 years ago by then President Donald Trump.

Ministry of External Affairs issued on Monday (25.July.2022). Collective reference The Economy Ministry announced the lifting of restrictive measures against Brazil’s exports of steel products.

Five years ago, then-President Donald Trump imposed tariffs on Brazilian steel purchases in addition to a 10% tariff on aluminum purchases. The move was canceled by the US government on July 19.

Section 232 action was taken on the grounds that these imports harmed the national security of the United States. Many other countries such as Russia, India and Turkey as well as the European Union are also affected.

According to Idamarati, the country will no longer charge a surcharge of up to 46% on imports of cold-rolled products from Brazil. Fees will be charged from other countries.

In addition to the US, the UK announced at the end of June that it would exclude Brazil from the application of the safeguard measure on steel and cold-rolled products, which had been taxed at 25% last year.

Read the full joint note issued by Itamaratty:

“The United States announced on July 19 that it was withdrawing countervailing and countervailing measures against Brazilian exports of cold-rolled steel products that have been in place in that country for more than five years. In conclusion, as demonstrated by Brazil, the destruction of the measures will not lead to the continuation or resumption of alleged material injury to the US industry.

“Therefore, the United States failed to impose additional duties of 46% – 35% countervailing duty and 11% countervailing duty – on imports of cold products from Brazil. There was no change in duties on the same products charged from other origins (China, India, Japan, South Korea and the United Kingdom). , the only country excluded is Brazil.

“Furthermore, on June 23, the United Kingdom announced that it would exclude Brazil from the application of the safeguard measure on steel sheets and cold-rolled steel products, subject to a 25% surcharge for one year. Exceeding the previously established maximum duration. Recognized by the World Trade Organization (WTO) Safeguard Agreement Brazil demonstrated to British authorities that the country’s export volumes met the exemption criteria.

“With this exemption, Brazil is currently exempted from all types of UK safeguards for steel products which are currently scheduled to run until June 2024.

“In both cases, Brazil’s Ministries of Economy and Foreign Affairs worked together. The US and the UK are the two main markets for Brazilian steel. In 2019, Brazil exported around US$7.3 billion worth of steel products to the world, of which US$3.4 billion went to the US and the UK.