Although the U.S. Trade Representative's (USTR) decision to exclude iron imports from higher tariffs was expected by market participants, it did bring relief to independent producers, sources told SteelOrbis.
These iron producers operate small blast furnaces in Minas Gerais and Espirito Santo in the southeast, Maranhão and Pará in the north, and Mato Grosso do Sul in Center-West.
A source at Sindifer, an association representing manufacturers in the state of Minas Gerais, said most of the work during the USTR hearings was done by their American clients. The source added that Brazilian cast iron is difficult to replace with a material of other origins due to its special qualities and environmental benefits, especially since its reducing agent is charcoal obtained from Brazil's plantation forests.
The Brazilian Presidential Secretariat for Public Affairs (Secom) said in a statement that "July 15, 2026 will go down in the history of relations between Brazil and the United States as an unfortunate milestone."
The statement said Brazil has amassed a $424.5 billion deficit in trade with the US over the past 15 years. It also states that 75 percent of US imports enter Brazil tax-free, while the average import tariff on these products is 3.1 percent.
According to Secom, Brazil does not recognize the legitimacy of investigations that are not based on multilateral trade rules.
Secom said that this process was initiated by false patriots who organized and publicly defended actions against our country driven by electoral considerations. motives
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