Brazil has significantly reduced annual import allowances for 13 categories of steel products. Companies exceeding these new limits now face substantially higher tariffs of up to 25%.

The Ministry of Development, Industry, Trade and Services (MDIC) confirmed the policy shift, which cuts nearly 250,000 metric tons from the previous import quota between June 2025 and May 2026. This protective measure aims to shield domestic steelmakers from international competition. Under the revised framework:

• Only 1.43 million metric tons of imported steel will qualify for preferential tariffs (9-11%)

• All imports beyond this threshold will attract the full 25% duty

This decision responds to a notable surge in steel imports flooding Brazilian markets this year. With local producers facing heightened pressure, the government is effectively recalibrating trade flows to prioritize homegrown manufacturing.

International suppliers should immediately:

1. Reassess Brazil-bound shipment volumes

2. Monitor quota utilization closely

3. Factor potential 25% tariffs into pricing models

The policy window takes effect mid-2025, giving traders limited time to adjust their supply chain strategies for the Brazilian market.