According to reports from Brazilian negotiators currently in active talks with the US Trade Representative (USTR), it appears the recent removal of Brazilian pig iron from a list of products previously exempt from 25 percent import tariffs with the US could stand, market insiders told SteelOrbis.
Brazilian pig iron, of which the US buys more than 80 percent of the country's exports, could soon be subject to increased US import fees as it appears the US side is not interested in reaching an agreement. Brazilian media reported that US negotiators have not made any specific requests and have offered no response when alternatives were proposed. It seems that a decision on the tariffs already has been made, reports say.
Media reports indicate pig iron industry stakeholders have until July 1 to submit comments ahead of a USTR review hearing set for July 6.
Despite their skepticism, Brazilian negotiators intend to keep talks open until the US announces its final decision later in July, hoping that current hearings with US private-sector representatives may prompt reversals for products considered essential to US steel and foundry operations.
Pig iron industry sources in Minas Gerais state told SteelOrbis that plans are underway to file a case in US civil courts focused specifically on Brazilian pig iron.
In 2025, the US imported 3.365 million mt of pig iron from Brazil, equivalent to 83 percent of Brazil’s total exports of the product.
Brazilian pig iron is indispensable to the US foundry industry, not only due to its competitive price, but also because the country’s independent pig iron producers use charcoal as reductant element in their blast furnaces, resulting in a “close to zero” net CO2 emissions.
When charcoal comes from planted forests, the CO2 emissions generated in blast furnaces are offset by the CO2 absorbed by the next generation of trees.
