USTR proposes tariff carve-out for Brazilian DRI

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.

DRI (HTS 7203.10.00) 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, neither DRI nor iron pellets received 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, 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 is imported from Trinidad and Tobago. Last year, its DRI shipments to the US reached 1,521,637 metric tons (mt), up 1% from 2024.

Brazil overtook Canada as the second-largest DRI supplier last year despite a 13.8% year-on-year decline in shipments to 305,072 mt.

Canadian DRI shipments plummeted 76.1% from 1,142,827 mt in 2024 to 273,482 mt in 2025.