Brazilian steel producers saw their shares rise in New York after the government extended a 25 percent tariff on steel imports above set quotas until June 2027. This state intervention directly benefits domestic capital, with CSN gaining 0.85 percent to US$1.18 and Gerdau adding 0.40 percent to US$5.02 on Tuesday, September 22, 2026.
Brazil, Latin America’s largest economy and its biggest steel producer, uses mills like CSN and Gerdau to supply both domestic construction and industry, alongside international markets. The tariff applies across 19 distinct product categories, shielding these corporations from cheaper foreign competition.
The State's Hand in Capital Protection
Gecex, the executive committee of the foreign-trade chamber Camex, is the body responsible for imposing these above-quota steel import taxes. Their decision to extend the 25 percent tariff demonstrates the state's active role in safeguarding the profits and market share of national industrial capital.
This move mirrors similar actions by other states in the region. Mexico, for instance, has had its own tariff reform in force since 1 January 2026, covering 268 steel tariff lines. These rates range from 5 percent to 50 percent, with most steel lines set at 35 percent and the highest 50 percent rate reserved for selected products, further illustrating how state power is deployed to manage global capitalist competition.
Global Capital Flows and Market Contradictions
China supplied a significant 45.4 percent of Latin America’s steel imports in 2025, according to Alacero, pushing import penetration to a record 40.4 percent one year earlier. This influx of foreign steel directly challenges the market dominance of domestic producers, prompting protectionist measures.
While Brazilian capital benefits, other players face shifting conditions. Mexico’s Ternium, for example, slipped 0.72 percent to US$56.43 on the same day. Ternium’s August 2026 results indicated strengthening Mexican fundamentals but uneven Brazilian demand, specifically noting weaker agricultural-machinery orders, highlighting the volatile nature of capital accumulation across different sectors and national markets. The broader SLX steel ETF closed up 0.61 percent at US$106.73, indicating overall gains for steel capital despite regional variations.