Brazilian Foreign Minister Mauro Vieira sent a 29-page letter to the US Trade Representative (USTR) calling the recent 25 percent import tariffs on import pig iron and other steel products as “unreasonable.”
Vieira argued that the USTR decision to raise tariffs rests on a basic error: it relies on allegations about Brazil’s commercial practices that should not be considered under Section 301.
On the specific claims, Vieira said the USTR had not shown that PIX, the payment system developed by Brazil’s Central Bank (BACEN), harms US companies, since it is open to all participants regardless of nationality.
In response to the claim that Brazil lacks laws, rules, or institutions to combat illegal deforestation, the document says funding for the relevant agencies has increased and that the accusation is based on narratives rather than facts or figures.
Addressing allegations that Brazil censors US big tech companies, Vieira said all companies operating in Brazil must comply with court orders and may face penalties if they fail to do so.
For Brazilian steel and pig iron, US import duties could rise to 37.5 percent, potentially making it impossible for these products to access the US market, where Brazilian pig iron currently accounts for more than 83 percent of US steel mill supply requirements.
Until recently, Brazilian pig iron had been exempt from the higher import tariffs because it is essential to the US steel and foundry industries, but that exemption has now been removed.
