The Brazilian government has announced that as of today, the number of steel types subject to import quotas has been increased from 19 to 23, with a 25% tariff imposed on products exceeding the quota. This measure, approved by the Executive Management Committee of the Brazilian Foreign Trade Chamber (Camex), is valid for 12 months and aims to continue Brazil's domestic steel industry protection policy initiated in 2024. Over the next 12 months, Brazil will implement import quotas for 23 types of steel products, with a 25% import tax imposed on quantities exceeding the quota.

According to the Ministry of Development, Industry, Trade, and Services (MDIC) of Brazil, these four additional products have been added due to significant increases in their import volumes last year, indicating they are gradually becoming substitutes for previously restricted products.

Zhongjin learned that, similar to last year, the import quota system will be established based on specific import volumes. Prior to exhausting the quota, the tax rates for importing these steel products will range between 9% and 16%; once the quota is exceeded, a 25% import duty will be levied.

The MDIC stated in a release: "The establishment of quotas aims to reduce the impact on industries that use steel as raw material (such as construction, automotive, capital goods, and electronics industries)." The department also clarified that imports based on trade agreements or under special trade regimes will not be included in the quota calculations.

To continue and expand the types of steel products subject to quota restrictions, the MDIC has utilized the technical standards previously decided upon. Any steel product with import volumes in 2023 that have grown by more than 30% compared to the average import volumes from 2020 to 2022 will fall under the scope of the 25% tariff.