In order to curb the rapid growth of steel imports, the Brazilian government implemented a steel import quota system in June this year. The imported steel exceeding the quota will be subject to a 25% import tariff.

However, some steel and metal downstream processing companies have expressed strong opposition to this, believing that increasing tariffs will eventually affect end consumers, leading to supply and demand shortages in the domestic market.

Therefore, some industry associations have made requests for zero tariffs for 12 months. For example, Brazil's National Association of Electronics Manufacturers (ELETROS) and the Brazilian Textile and Apparel Industry Association (ABIT) have all put forward requirements.

However, the Brazilian government insisted on protecting the local steel industry in this decision and rejected the request of these industrial consumer groups and industry associations to reduce tariffs to zero.