Government/Policy
July 16, 2026
Pig iron gets exemption from new Section 301 tariffs on Brazil
Written by Laura Miller
The Office of the US Trade Representative (USTR) has finalized a 25% Section 301 tariff on all goods imported from Brazil. Importantly for the US steel industry, pig iron has received an exemption from the levy.
The exemption was confirmed in the final action notice issued by USTR on July 15.
Pig iron was initially listed among products subject to the tariff, while HBI and DRI received a carve-out.
But industry groups argued pig iron is essential for US steelmaking. They warned that a tariff would raise costs for electric-arc furnace producers.
USTR officials agreed the product is critical to domestic supply chains.
The agency’s decision stabilizes feedstock pricing for steel mills.
All other Brazilian products not exempted will face the new 25% tariff, effective July 22.
Steel products already covered by Section 232 tariffs are not subject to the additional 25% tariff. Other excluded raw materials include steel scrap, DRI/HBI, coal, ferroalloys, iron pellets, and zinc.
The Steel Manufacturers Association (SMA) responded favorably to USTR’s action. “The Section 232 steel tariffs remain the most consequential pro-manufacturing trade action in a generation, and ensuring other trade enforcement actions complement them, as USTR has done here, creates a powerful framework that levels the playing field, drives investment, expands American steel production, and strengthens both our economic and national security,” SMA Executive Vice President Brandon Farris told SMU.
Forced labor 301s
Brazilian pig iron is also at the center of a separate Section 301 investigation of forced labor practices. USTR has proposed an additional forced labor tariff of 10-12.5% on all goods not currently covered by Section 232.
There isn’t currently a special carve-out for pig iron, DRI, HBI, or iron pellets. USTR heard arguments last week, including from the SMA, on why the product should receive an exemption.
The SMA believes USTR’s action in the Brazil Section 301 could set a precedent for another pig iron exemption under the forced labor Section 301s.
Noting the Trump administration’s “ironclad commitment to rebuilding America’s steel industry,” Farris said, “We believe the administration will continue its strong commitment through the Section 301 investigations to ensuring the long-term success of the domestic steel industry and securing critical supply chains.”
