Late last Thursday, the Brazilian Ministry of Development, Industry, Trade and Services announced that the government has raised import tariffs on five steel products.
The decision was made by the Executive Management Committee (GECEX) at the Foreign Trade Chamber (CAMEX).
The products affected by the increased tariffs include certain types of iron or steel bars, iron or steel tubes and hollows, as well as two types of welded pipes.
The rates have been adjusted differently for each product. Previously, the tariffs ranged from 10.8% to 14.4%, and they have now been raised to 12% to 16%.
According to GECEX, this move was made to restore import duties back to the levels set by the Mercosur Common External Tariff. In 2022, Brazil had unilaterally lowered these tariffs, along with other products.
The decision to increase the tariffs was influenced by appeals from the domestic steel industry, as reported by the Ministry.
The revision of import tariffs is expected to have an impact on the steel market in Brazil.
With the higher tariffs in place, it is likely that the cost of imported steel products will increase. This, in turn, may lead to a higher demand for domestically produced steel, benefiting the local industry.
However, some experts argue that the increase in import tariffs could lead to retaliatory measures from trading partners, potentially affecting Brazil’s overall trade relations. It remains to be seen how these changes will impact the steel industry and the broader economy in the coming months.
The Brazilian government’s decision to raise import tariffs on steel products reflects its aim to protect and support the domestic industry.
The Ministry of Development, Industry, Trade and Services believes that this measure will help alleviate some of the challenges faced by the local steel industry and promote its growth.
ANBA
