"Export is the major alternative for the sector. We made a special request to the government to talk to make the US market more flexible," Valor Econômico newspaper quoted steel association (IABr) head Marco Polo de Mello Lopes as saying.
Bolsonaro met with industry representatives on Monday, including Polo de Mello Lopes, and responding to the demand talked about the issue with US President Donald Trump via phone.
Local steelmakers seek to capitalize on the seemingly good relationship Bolsonaro has with Trump to negotiate an easing of the current quota system or even Brazil’s exit from it. Canada, Mexico, and Australia are already excluded from certain tariffs.
Besides the tariffs, the Brazilian steel industry is operating at 40% capacity because of low demand caused by the COVID-19 pandemic.
Yet the industry’s position is ambiguous. It wants easier access to the US market, but more protectionism for the domestic market.
During the meeting with Bolsonaro, Polo de Mello Lopes proposed a special tariff on Chinese and South Korean steel imports, alleging both countries pursue predatory trade practices.
