SAO PAULO (Reuters) – Brazilian steelmaker Gerdau remains optimistic about the performance of its North American operations, given a high order backlog, despite concerns generated by the U.S. trade policy, executives said on Tuesday.
Gerdau reported that it has not seen reductions in customer orders in the U.S., where President Donald Trump’s administration seeks to stimulate the return of production chains from various sectors back to the country.
However, Gerdau decided to cancel studies for the implementation of a special steel mill in Mexico amid the creation of the 25% steel import tariff by the U.S., according to Chief Executive Gustavo Werneck.
Gerdau’s North American operation was responsible for 49% of the group’s operating results in the first quarter.
“Of course, some sectors are more concerned than others (about import tariffs), such as the automotive industry, but in general, we understand that we have a robust level of activity,” said Gerdau’s Chief Financial Rafael Japur.
(Reporting by Alberto Alerigi Jr; Writing by Isabel Teles; Editing by Alistair Bell)
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