Alckmin announces that the US has eliminated a 1034

Alckmin announces that the US has eliminated a 103.4% tax on Brazilian steel

According to the government, protectionist measures on pipes made in Brazil had been in place since 1992 and were lifted on Thursday

The Vice President and Head of the Mdic (Ministry of Development, Industry, Trade and Services), Geraldo Alckmin, said this Friday (January 5, 2024) that the United States has abolished the 103.4% surcharge on steel pipes manufactured in Brazil sold in the North American country. The protectionist measure had been in force since 1992 and was lifted on Thursday (January 4), according to the Brazilian government.

Alckmin explained that Brazil is “the only country” excluded from U.S. trade defense measures. “It is the fourth lifting of the antidumping duty since 2022,” he added in an interview with journalists.

The statement came as part of a commentary on the results of Brazil's trade balance in 2023. This year there was a record surplus of $98.8 billion. The result is 60.6% higher than in 2022, when it achieved a positive balance of $61.5 billion.

The antidumping duty measure to prevent products exported from a particular country, in this case Brazil, at low cost, from harming domestic manufacturers (US) was applied to welded nonalloy steel pipes originating in Brazil.

“The exclusion of Brazil from the measures alone is proof of our ability to negotiate,” said Foreign Trade Minister Tatiana Prazeres.

According to the Mdic, Brazil exported cast iron, iron or steel works worth around $1.8 billion, of which $332 million was destined for the United States in 2023. This represents 18% of Brazilian exports in this segment.

In turn, Brazilian exports specifically related to welded round steel pipes totaled $22 million in 2023, of which $457,000 were destined for the United States (2% of Brazilian exports in this sector).

The Brazilian government said there could be a “surge following the U.S. government’s lifting of the trade defense measure.”