HS Code:
Iron and steel products from Brazil, as enumerated in U.S. note 16(b)(iv) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS), include specific categories of steel products subject to Section 232 tariffs and quotas. These products, often semi-finished steel or specific flat-rolled products, are covered by exclusions granted by the Secretary of Commerce under note 16(c), which allows certain imports to be exempt from additional duties or quotas under specific conditions. Brazil is a significant supplier of steel to the U.S., with a focus on semi-finished products like slabs used in further manufacturing. These exclusions are critical for U.S. industries reliant on Brazilian steel inputs, balancing national security concerns with economic needs.
Total Trade Volume
Approximately 4.5 million metric tons
Data from 2022
Source
U.S. International Trade Commission (USITC) and U.S. Census Bureau
3.8 million metric tons
84% of Brazil's steel exports under this category of total trade
Increasing
0.3 million metric tons
7% of Brazil's steel exports under this category of total trade
Stable
0.2 million metric tons
4% of Brazil's steel exports under this category of total trade
Decreasing
Average Rate
25% (Section 232 tariff, subject to exclusions)
Highest Rate
25% (on non-excluded imports)
Lowest Rate
0% (for products granted exclusions under note 16(c))
Increased demand for semi-finished steel in the U.S.
Higher reliance on Brazilian imports due to competitive pricing and quality, especially for steel slabs used in rolling mills.
2021-2022
Fluctuations in global steel prices
Brazilian steel remains competitive despite tariffs, though price volatility affects long-term contracts and exclusion requests.
2022
Shift toward sustainability in steel production
Brazilian producers adopting greener technologies may gain preference in markets with environmental regulations, influencing exclusion approvals.
2023
The U.S. Department of Commerce extended certain exclusions for Brazilian steel products under note 16(c), allowing specific importers to bypass the 25% tariff or quota limits for 2023.
January 2023
Ensures stability for U.S. manufacturers reliant on Brazilian steel, reducing input costs and maintaining supply chain continuity.
A bilateral agreement adjusted the quota levels for Brazilian steel imports, with provisions for exclusions under specific conditions to balance trade and security concerns.
September 2022
Provides predictability for Brazilian exporters and U.S. importers, though some sectors face tighter restrictions outside exclusion categories.
The U.S. government introduced stricter review processes for exclusion requests under Section 232, requiring detailed justification from importers.
March 2023
May delay approvals for Brazilian steel imports, potentially affecting trade volumes and increasing administrative costs for stakeholders.