Philip Bell, president of the Steel Manufacturers Association (SMA), accused Brazil of heavily subsidizing its steel industry in a letter to Jamieson Greer, the US trade representative. Bell described Brazil as the "South American China" during a public consultation by the US Trade Representative (USTR) to evaluate unfair trade practices.
According to Bell, Brazil's steel industry operates at a production capacity of 50.9 million metric tons annually but produced only 31.8 million metric tons in 2023. Despite this idle capacity, the country has proposed a BRL 100 billion ($18 billion) plan to expand its steel production capabilities.
Bell highlighted challenges in exporting steel to Brazil, pointing to import tariffs averaging 12.6 percent, which can rise to 20 or 35 percent for certain products, and the AFRMM tax applied to freight rates for using Brazilian ports. He also criticized Brazil’s development bank, BNDES, for providing subsidized credit to the industry.
Bell noted that Brazil accounted for 70 percent of US slab imports last year, calling the supply "unnecessary" given that producing semifinished steel products typically employs 70 percent of the workforce in the steel production chain.
