Analysis
June 11, 2026
USTR proposes tariff carve-out for Brazilian DRI/HBI
Written by Laura Miller
The Office of the US Trade Representative has proposed a Section 301 tariff carve-out for direct-reduced iron (DRI) and hot-briquetted iron (HBI) from Brazil while planning higher tariffs for other major suppliers.
Brazil 301
In a sweeping Section 301 determination against Brazil, USTR found a wide range of Brazilian policies are “unreasonable” and burdensome to US commerce.
USTR has proposed an additional 25% tariff on all Brazilian goods, with exemptions for certain items, including those already subject to Section 232 tariffs, which include steel and aluminum.
Additionally, “The proposed exemptions include raw materials that if subject to the proposed additional tariffs could lead to the unavailability of domestic supply,” USTR noted in a Federal Register notice.
HTS 7203.10.00, which includes DRI, HBI, and DRI-grade iron ore pellets, is listed in Annex A of the document as an excluded raw material. Ferroalloys, iron pellets, and zinc are also on the list.
Forced labor 301s
In other Section 301 investigations of forced labor practices, DRI, HBI, and iron pellets did not receive a special carve-out.
USTR has proposed additional tariffs of 10-12.5% on all goods for 60 economies, with exceptions, of course. Steel and aluminum will likely be spared the additional levy as Section 232 duties already cover them; in this case, the S232 and S301 do not stack.
Major suppliers of DRI and HBI, however, would face the additional 10-12.5% forced-labor tariff, including Trinidad and Tobago, Libya, Venezuela, Canada, Mexico, Malaysia, Russia, and Saudi Arabia.
Next steps
USTR is seeking public comment on its Section 301 proposals and may change its final decisions in these investigations. Written comments are due by July 1, and a hearing will be held on July 6.
The statutory deadline for taking responsive action is July 15, USTR Ambassador Jamieson Greer said.
Import figures
Most DRI/HBI is imported from Trinidad and Tobago. Last year, its shipments to the US reached 1,521,637 metric tons (mt), up 1% from 2024.
Brazil overtook Canada as the second-largest DRI/HBI supplier last year despite a 13.8% year-on-year decline in shipments to 305,072 mt.
Canadian DRI/HBI shipments plummeted 76.1% from 1,142,827 mt in 2024 to 273,482 mt in 2025.
