Brazil Steelmakers Press for Swift Action as EU Seeks to Halve Quotas and Levy 50% Over-Quota Tariff

Overview

• Brazil’s Instituto Aço Brasil said the European Commission’s proposal to cut duty‑free steel import quotas roughly in half and apply a 50% tariff on over‑quota volumes heightens the need for tougher local trade defences.
• The EU move is described as aligning with U.S. protections and follows tightening in North American markets, increasing the risk that redirected volumes land in Brazil.
• Aço Brasil reported flat‑rolled steel imports rose 30% from January to August versus a year earlier and are projected to end 2025 up 32.2%.
• Brazil recently renewed a quota‑tariff mechanism for 14 of 273 NCM codes, which the institute argues remains insufficient as below‑cost steel still enters via special regimes, state incentives and product misclassification.
• Gerdau’s Jorge Gerdau urged a more assertive government response, noting some mills have pared investment plans and saying imports now account for about one third of Brazil’s steel market.