ArcelorMittal Considers Brazil Investment Cuts Amidst Import Surge and US Tariffs
ArcelorMittal, the world's leading steel company, has hinted at potential cuts to its planned investments in Brazil. The announcement comes amidst a surge in cheap steel imports and US bank tariffs that are threatening the company's expansion plans.
ArcelorMittal Brazil's leader, Jorge Oliveira, revealed on Tuesday, August 26, that the company is considering reducing its planned investments due to the impact of cheap steel imports and US bank tariffs. The company had previously announced plans to invest $4.6bn (around 25bn reais) in Brazil.
The company's expansion plans include a significant investment of $661-696m to expand a lamination facility in Espirito Santo. However, Oliveira warned that the influx of imports could lead to delays or even cancellation of this project. The expansion hinges on the import influx, suggesting that the company is closely monitoring the situation.
Steel imports into Brazil have surged by 200% since 2020, accelerated by US bank tariffs and shifting supply chains. In April 2024, Brazil raised import tariffs and imposed quotas for some steel products, but local providers found these measures insufficient. Most recently, in the first quarter of 2025, Chinese steel imports to Brazil increased by 57%.
ArcelorMittal produces around 40% of Brazil's steel and exports roughly a third of its semi-finished steel products to the US. However, in late June, US President Donald Trump announced 50% tariffs on Brazilian steel exports to the US, further complicating the company's operations.
ArcelorMittal's potential reduction in planned investments in Brazil highlights the challenges faced by the steel industry due to cheap imports and trade tariffs. The company's expansion plans, including the Espirito Santo facility, are at risk. The situation underscores the need for effective policies to protect local industries and promote fair trade.
