With prospects of avoiding a sharp increase in U.S. import tariffs on Brazilian iron, Brazilian iron producers remain optimistic they could be included in the new list of excluded products subject to new U.S. import tariffs, which will rise to 37.5 percent later this month.
Although Brazilian iron currently faces an existing 10 percent import tariff, the recent exclusion of a product - considered important to U.S. electric arc manufacturers steel - from US Trade Representative
Fausto Varela, president of Sindifer, an association of iron producers in Brazil, says he is increasingly optimistic that the sector can avoid a 37.5 percent US import tariff in the current round of discussions at the USTR, according to local media. The new tariffs, he said, will shut down much of the sector's production as it currently exports more than 83 percent of its products directly to the United States.
Varela said while higher import tariffs will likely apply to a wide range of products, cast iron has a good chance of being added to the exemption list, as it was until recently.
He said support for Brazilian products from American buyers has been helpful as they oppose the high tariff. Brazil accounts for 60 percent of total U.S. iron imports, and those customers believe the tariff could raise costs and hurt the competitiveness of steel produced in the U.S.
The USTR is expected to announce its final decision on July 15.
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