BRASILIA (Reuters) - A potential hike in U.S. tariffs would be “manageable” for Brazilian steel producers and would not have a “meaningful impact” on the larger steel companies, Moody’s Investors Service said on Friday in a note to clients.
Brazil’s largest flat steelmaker, Usiminas, exports only 15 percent of its output and only a negligible part goes to the U.S. market. The second-largest company CSN exports just 5 percent of its steel, Moodys said.
Tariffs could, in fact, favor Gerdau SA because it has significant operations in the United States, Moody’s said.
Reporting by Anthony Boadle; Editing by Daniel Flynn and Tom Brown