MEXICO CITY – Brazilian steelmaker Gerdau has officially scrapped plans to build a $600 million special steel plant in Mexico, citing uncertainty surrounding U.S. tariffs on steel imports as the primary reason for the cancellation.
The facility, which was to have a production capacity of 600,000 metric tons per year, was intended to serve the U.S. automotive sector, a key market for Gerdau.
Company CEO Gustavo Werneck confirmed the decision, stating that the structural changes expected in the global automotive industry—triggered by the U.S. tariff policies—made the investment too risky. “The uncertainty over how the supply chain will evolve made it impossible to proceed,” Werneck said, according to local media reports.
The move marks a significant setback for Gerdau’s expansion plans in North America and highlights the broader impact of protectionist trade policies on global manufacturing and investment flows.
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