Kertao cancels US $ 600 million in Mexico

Brazil’s largest steel producer Gertao on Tuesday announced the cancellation of US $ 600 million in Mexico, which refers to uncertainty following the 25% of the fees imposed by US President Donald Trump on steel and aluminum imports.

In Mexico, 600,000 tonnes of new steel plant has been assigned a year. The announcement of a company in mid -2024.

In Mexico, there is a great uncertainty in the future near the automobile, Gurda’s president Gustavo Vernek said at a convention to present the first quarter results.

“There will be a very deep reconstruction of the vehicle base in the coming years,” Wenke said. Mexico is uncertain that “vehicle parts for the United States will continue as a solid base for production.”

At a conference call with shareholders in February, Verneck had earlier announced that the company would review its investment plans in Mexico.

Currently, Kertao is creating half of its sales in the United States and Mexico, and the company’s nearby showing strategy is expected to help ensure its position in the region.

“It is very soon to stop the manufacture of vehicle parts in Mexico and find out whether it will return to the United States or elsewhere,” Vernek told reporters on Tuesday. “Our decision depends on the uncertainty of how the global vehicle distribution chain will be reorganized after the fees.”

The company reported a net profit of $ 134 million in the first quarter of 2025, indicating a decline of 39% of the same period last year, despite the increase in sales, proven the impact of the revenue fees.

Brazil’s steel charges

Although the issue is still under consideration, Gerdow may reduce its investment in Brazil in favor of overseas projects, the CEO said. Vernek quoted as a challenge for the lack of trade security measures in Brazil.

Last year, the Brazilian government imposed a 25% import fee for 11 steel products to protect itself from the Chinese competition. However, Brazilian steel manufacturers have requested more tax on a wide range of products.

“Is it worth continuing to invest in Brazil, where trading safety cannot be obtained. Is this allowing a level to compete in the sports industry?” Vernek asked. “If the government does not take action, this will have the most significant impact on the country’s money.”

Gertao expects the government to announce action in May to prevent Brazil, especially China’s alloy flow.

With reports from Forbes Mexico And Infoba