The Office of the United States Trade Representative (USTR) has issued a final decision in its Section 301 investigation into Brazil's trade practices, confirming that, effective July 22, 2026, it will impose an additional 25 percent tariff on goods of Brazilian origin, while maintaining a broad list of product exemptions, including several key raw materials used in the steel industry.
The steel industry benefits from the expanded list exemptions
Following a public consultation process, USTR has expanded the list of exempt products from the June proposal. Among the new products exempt from the tax were pig iron, waste and scrap iron and steel.
According to the USTR, these products were excluded because they either represent essential raw materials, cannot be obtained domestically or from alternative suppliers in sufficient quantities, would cause economy-wide supply disruptions if they were subject to tariffs, or would not significantly contribute to eliminating the practices identified in the survey. investigations.
The pig iron exemption reflects the dependence of U.S. steelmakers.
In explaining the exemption, USTR noted that more than 95 percent of U.S. domestic pig iron production is consumed domestically by integrated steel mills, leaving foundries and electric arc furnace manufacturers dependent on imported pig iron.
USTR also noted that alternative international supplies remain limited as China consumes almost all of its own products while exports from Russia and Ukraine are limited by the ongoing war. Public comments also asserted that pig iron is an essential raw material used along with scrap to produce pig iron, and that imposing tariffs would increase costs for processors without sufficient domestic alternatives.
Scrap steel also excluded
The US Trade Representative also decided to exempt waste and scrap iron and steel from the tax, stating that this material is an essential raw materials for carbon and alloy steel production and that viable domestic supplies are insufficient. The US Trade Representative concluded that exempting the product from the tax would help avoid supply shortages and unnecessary disruptions for US steel producers.
The latest measure also confirms that products already covered
