The South Korean government has formally requested Brazil to reconsider a recent tariff increase on the steel industry, arguing that it harms both Brazilian industry and the integration of value chains between the two countries.
The South Korean government has formally addressed the Brazilian authorities, asking for a reassessment of a recent increase in tariffs on the steel sector. This increase comes at a critical time, as Brazilian President Luiz Inácio Lula da Silva is scheduled to visit South Korea next month. The timing of the complaint underscores the importance of bilateral relations and the potential impacts on commerce between the two nations. South Korea is a significant supplier of steel to Brazil, and such measures could strain these economic ties.
In January, Brazil's Foreign Trade Chamber approved an increase in import tariffs on nine categories of steel products, raising them from a range of 10.8% to 12.6% to a flat 25%. This decision has raised concerns among South Korean exporters, particularly regarding the implications for products such as rolled steel and wires. The net value of Brazilian imports from South Korea reached nearly $270 million in 2025, suggesting that the South Korean steel industry plays a vital role in meeting Brazil's demand for steel and related products.
The implications of Brazil's tariff increase could be significant, not only for South Korean exporters who are facing greater competition and potential losses but also for Brazil's domestic market dynamics. By potentially impacting the supply chain and pricing of steel products, Brazil risks harming its own industry while also affecting its international trade relationships. As Lula prepares for his visit, the outcome of these tariff discussions could play an essential role in shaping future economic cooperation between Brazil and South Korea.
