Brazilian steelmaker Gerdau believes that the current 25% steel tariff cannot achieve the expected effect of reducing the import of low-priced steel products from China. Chinese steel products are still competitive in the Brazilian market. Therefore, Gerdau recommends that all imported steel products should be levied at least 35% after the quota reaches the upper limit. Import tariffs currently target only 15 product categories.

In addition, the quota, set based on 30% higher than the historical import volume, is invalid as steel imports in the first nine months of this year have exceeded historical levels by 77%.

Moreover, Trump's victory as the next US president may intensify the pressure on Brazilian steel imports. Because Trump has promised to increase US import tariffs, steel from various countries may be diverted to the Brazilian market.