The US does not impose a 103.4% surcharge on steel pipes from Brazil
In a historic decision, the United States (US) has decided to lift a 30year trade barrier on Brazilian steel production, particularly steel pipes.
The American country has abolished the antidumping duty on Brazilian steel pipes in force since 1992, now allowing these products to enter the North American market without the 103.4% surcharge.
What does the end of US steel tariffs mean for Brazil?
This repeal represents a major step for the Brazilian industry, especially for the export of steel pipes.
The abolition of the surcharge is expected to further boost Brazilian exports in 2024, bringing more revenue to the country and helping to create jobs in the steel industry.
The abolition of the surcharge also represents an important victory for Brazilian trade policy.
According to Foreign Trade Minister Tatiana Prazeres, Brazil was the only country able to prove that the antidumping duty was not justified and should therefore be lifted.
Prazeres explained that this success shows the Brazilian government's commitment to defending its companies on the international stage.
Impact on trade in Brazilian steel pipes
In 2023, Brazil exported around $22 million worth of welded steel pipes, of which only $457,000 went to the United States.
With the lifting of the ban, sales in the American market are expected to increase significantly, thereby increasing the share of Brazilian exports in this sector.
According to the Minister of Development, Industry and Trade (MDIC) and Vice President of the Republic, Geraldo Alckmin, the decision will help boost Brazilian exports in 2024.
Furthermore, according to MDIC, the difference between current market shares (between 2% and 18%) suggests great growth potential for Brazilian exports in the future.
“It is an important achievement that will further expand steel exports of steel pipes to the United States,” Alckmin said as he announced last year’s record trade surplus of $98.8 billion.
Finally, after eliminating the antidumping duty on Brazilian steel pipes, the United States still imposes surcharges on products in the same segment from countries such as India, Mexico, South Korea, Taiwan and Thailand.