The Office of the United States Trade Representative (USTR) has issued its final determination under the Section 301 investigation into Brazil's trade practices, confirming that a 25 percent additional tariff on Brazilian-origin goods from July 22, 2026, while maintaining a broad list of product exemptions, including several key raw materials used by the steel industry.
Steel sector benefits from expanded exemption list
Following a public consultation process, USTR expanded the list of exempted products compared with the June proposal. Among the newly exempted products included pig iron, iron and steel waste and scrap.
According to USTR, these products were excluded because they either represent essential raw materials, cannot be sourced domestically or from alternative suppliers in sufficient quantities, could cause economy-wide supply disruptions if subjected to tariffs, or would not materially contribute to addressing the practices identified in the investigation.
Pig iron exemption reflects dependence of US steelmakers
In explaining the exemption, USTR noted that more than 95 percent of US domestic pig iron production is consumed internally by integrated steelmakers, leaving foundries and electric arc furnace producers dependent on imported pig iron.
USTR also pointed out that alternative international supplies remain limited, as China consumes nearly all of its own production while exports from Russia and Ukraine have been constrained by the ongoing war. Public comments further argued that pig iron is an irreplaceable raw material used together with scrap to manufacture cast iron and that imposing tariffs would increase costs for downstream manufacturers without sufficient domestic alternatives.
Steel scrap also excluded
USTR also decided to exempt iron and steel waste and scrap, stating that the material represents an important feedstock for carbon and alloy steel production and that viable domestic supplies are insufficient. USTR concluded that exempting the product would help avoid supply shortages and unnecessary disruptions for US steel producers.
The final measure also confirms that products already subject to Section 232 measures, including steel, aluminum and their derivative products, will not be subject to the additional Section 301 tariff.