The protectionist measures adopted by U.S. President Donald Trump are dismantling decades of global economic agreements built on international cooperation, according to Jorge Gerdau Johannpeter, the owner and chairman of Brazilian steelmaker Gerdau. He believes Trump’s actions may be part of a broader negotiating strategy.
“Trump’s measures are destabilizing this historical process. It’s almost like a political move to force a renegotiation. That’s how I see it. It’s a very complex issue. Perhaps one of the hardest questions to answer is what Trump’s real objective is,” Mr. Gerdau told Valor, during an event held by Junior Achievement, an education-focused NGO, on Thursday (8), of which he is a major supporter in Brazil.
Mr. Gerdau’s comments came shortly before the U.S. and U.K. governments announced the first agreement in the ongoing global tariff war. Under the deal, finalized on Thursday (8), British automakers will be allowed to export 100,000 vehicles to the U.S. with a 10% tariff—down from the originally proposed 25%.
Over the weekend, U.S. and Chinese representatives met in Geneva to discuss tariff rates. According to U.S. Treasury Secretary Scott Bessent, the talks made “substantial progress,” with more details expected Monday (12).
The current scenario mirrors what occurred in the steel sector in 2018, during Trump’s first term. At the time, the U.S. and Brazilian governments renegotiated export quotas of 3.5 million tonnes of semi-finished steel and 687,000 tonnes of rolled products. The deal softened Mr. Trump’s previous decision to impose a 25% tariff on steel imports.
In recent years, the tariff has been at 10%. President Trump’s new move now raises it back to 25% for the entire Brazilian steel industry. Mr. Gerdau said the sector is in talks with the Brazilian government, but the full impact remains unclear. The industry’s challenge, he noted, is to convince the U.S. government that Brazilian steel plays a complementary role in American industry.
Gerdau’s operations in Brazil and the U.S.
Regarding his own company, Gerdau said the Brazilian unit—despite having key export agreements—has been hurt by the tariffs. However, the group also owns a major operation in the U.S., which stands to benefit. “The United States was traditionally a strong partner for certain companies. Gerdau is globally affected by the steel market, but in the U.S., the situation is the opposite,” he said.
During investor calls and conversations with journalists, the company has indicated signs of recovery in its U.S. operations following Mr. Trump’s decree. With 30% idle capacity in the American market, Gerdau sees room to increase output without new investment.
The company currently produces about 4 million tonnes of steel annually. If it opted to expand capacity, it could add another 1.5 million tonnes per year.
Concerns over Chinese steel in Brazil
Gerdau also raised concerns about the influx of Chinese steel in Brazil. Domestic steelmakers such as Usiminas and Gerdau have issued warnings, threatening to delay or cancel planned investments unless the Brazilian government imposes anti-dumping measures to counter what they describe as a flood of low-cost Chinese steel.
According to Mr. Gerdau, China has an annual steel surplus of 100 million tonnes due to a slowdown in its construction sector. That surplus is four times Brazil’s annual output and demand, around 25 million tonnes. He argues that many Chinese steelmakers—mostly state-owned—dump their subsidized products into foreign markets to preserve domestic jobs.
The Brazilian government introduced a regulation to curb imports of nine steel items (listed under the Mercosur Common Nomenclature, or NCM). Import quotas were set by the Foreign Trade Chamber (CAMEX), with any volumes beyond those limits subject to a higher 25% import tax. Still, the industry considers the response insufficient, as Chinese steel continues to gain ground in Brazil in 2025.
“So what has the Western world done? The U.S., Mexico, Canada, and Chile all imposed 25% protections. Then all of Europe followed. Even Turkey, a major producer and exporter, implemented similar measures. Practically the entire Western world has adopted this protection. And Brazil is lagging. We’ve managed to implement some measures, but there are still gaps, and China continues to sell at a heavy loss,” he said.
