Key facts
- U.S. exempted Brazilian and Indian pig iron from Section 301 forced-labor tariffs.
- Brazilian pig iron avoids a 12.5% tariff, and Indian pig iron avoids a 10% tariff.
- U.S. buyers currently pay a 10% tariff under the temporary Section 122 regime, expiring July 24.
- Pig iron imports from all origins would enter the U.S. without additional duties from July 25 if the tariff lapses.
- U.S. steelmakers and Brazilian producers argued tariffs would increase U.S. steel production costs.
- Brazil supplied 59% of U.S. pig iron imports (1.3 million tonnes) from January to May.
The U.S. Trade Representative has exempted Brazilian and Indian pig iron imports from Section 301 forced-labor tariffs, avoiding potential 12.5% and 10% duties, respectively. U.S. buyers currently face a 10% tariff under the temporary Section 122 regime, set to expire July 24. Without this exemption, pig iron imports would enter the U.S. without additional duties from July 25. The USTR granted exemptions after U.S. steelmakers and Brazilian producers argued that tariffs would increase costs for U.S. steel production and that alternative suppliers could not replace Brazilian volumes. Brazil supplied 59% of U.S. pig iron imports, or 1.3 million tonnes, from January to May. Brazil estimates that newly announced U.S. tariffs will affect 23.1% of its exports, with 16.5% facing combined duties of 37.5%. Approximately 2,000 Brazilian products, including coffee and orange juice, are also exempt from recent tariffs.