By Brazil Stock Guide – Jorge Gerdau, chairman of the Gerdau Group (GGB), and president of the Movimento Brasil Competitivo (MBC), has called on Brazil to adopt a more assertive approach to defending its steel industry amidst a global rise in trade protection measures and an influx of subsidized Chinese steel. Speaking at the 26th Brazilian Institute of Corporate Governance (IBGC) Congress on Thursday, Gerdau emphasized the growing need for stronger commercial defense strategies, particularly following the European Commission’s decision to increase tariffs on steel and aluminum imports by 50%, double the current rate.
“The example set by Europe, with its 27 member countries—and often the UK and Greece in alignment—is crucial. It shows the mobilization of the European economy in response to the aggressive trade policies in the steel sector,” Gerdau told Valor. “While this measure affects the sector, it is broadly aimed at protecting the industrial competitiveness of Europe.”
The impact of Chinese steel on the Brazilian market is growing, with imports now accounting for one-third of the country’s steel market. From January to August 2025, imports of hot-rolled steel increased by 30% compared to the same period in 2024, with projections suggesting a 32.2% rise for the full year—three times the historical average. Despite efforts to reinforce trade defenses, including renewing the Cota-Tarifa mechanism for 14 NCM codes, Brazilian imports of Chinese steel remain significant, prompting many domestic steelmakers, including Gerdau (GGB) and Usiminas (USIM5), to scale back investment plans.
Gerdau criticized Brazil for failing to reach the level of trade protection seen in developed economies. “Brazil has a competent technological structure at the Ministry of Development, Industry, and Trade (MDIC), but the trade war today is total. The country has not yet reached the protection levels that the developed Western economies have implemented,” he stated.
The businessman also addressed the recent diplomatic rapprochement between Brazilian President Luiz Inácio Lula da Silva and U.S. President Donald Trump. This move is seen as a diplomatic effort to reverse the 50% tariff on Brazilian steel imports. Gerdau, whose company operates in the U.S., has been less affected by the measure compared to other Brazilian producers, though it continues to monitor the evolving trade policies. “The opening of dialogue is extremely important. We are hopeful that through dialogue, ways will be found to resolve the trade conflict in the short term,” he remarked.
Strategically, Gerdau has also announced plans to begin selling iron ore starting in 2026, which will help meet domestic demand and generate surplus for export. “This will allow us to meet all our internal demand while generating excess for export,” Gerdau added, reinforcing the company’s global competitiveness.
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