The US could impose tariffs totalling 37.5pc on Brazilian basic pig iron (BPI) by mid-July, as the product does not appear on current exemption lists under two separate Section 301 of the Trade Act of 1974 actions targeting Brazil.
The US Trade Representative (USTR) proposed a 25pc tariff on a range of Brazilian products starting on 15 July, following a determination that Brazil has unreasonably burdened US commerce through its trade policies.
The country could also face an additional 12.5pc duty under a separate Section 301 probe related to forced labor concerns.
BPI does not appear on the lists of exemptions published by the USTR's office on 1 and 2 June.
The steel feedstock is integral to US EAF steel mills and could still be excluded from the measures following public hearings scheduled for 6 and 7 July. The USTR requires requests to appear at the hearings to be submitted by 22 June.
US steelmakers are expected to be heard during the process to explain how the tariffs could increase costs in their supply chain as they have become increasingly reliant on Brazil as a BPI source following the 2022 outbreak of the Russia-Ukraine conflict.
Brazil accounted for 63.5pc, or 4.14mn metric tonnes (t), of total BPI imports between January 2025 and March 2026. Although Indian cargoes have increased recently, overall capacity elsewhere remains insufficient to offset Brazilian supply. Demand for pig iron has been supported by elevated US steel production, with mills operating above the widely considered healthy utilization rate of 80pc in recent weeks, according to the American Iron and Steel Institute.
Output has increased since the separate 50pc Section 232 steel tariffs curbed imports, prompting mills to raise prices and widen margins.
The USTR annex of exempted products published on 1 June includes a related ferrous category under HTS code 7201.50.60 (spiegeleisen), but not the far more widely traded non-alloyed pig iron under code 7201.10.00. Brazil has not exported the former product to the US in significant volumes, but instead, the country shipped all of its 260,000t of BPI in the latter category in April, according to customs data.
Any additional tariffs would likely increase production costs for the EAF-heavy US steelmakers. The Argus pig iron Nola cfr assessment currently stands at $510–520/t. If the US imposes a 37.5pc tariff, costs could rise by roughly $190/t based on current prices.
The USTR did not respond to an Argus inquiry on why BPI was not included in the exemption lists or whether the administration plans to exempt the material under either of the two trade actions.
In 2025, BPI was exempted from US tariffs imposed on Brazilian products under the National Emergencies Act.
