The United States has exempted pig iron imports from Brazil and India from Section 301 tariffs on forced labor, the U.
S. Trade Representative (USTR) said on Thursday, shielding Brazilian materials from a 12.5% duty and Indian cargoes from a 10% rate.
Currently, buyers in the United States pay a 10% duty on imports of pig iron from all countries in accordance with the temporary regime provided for in Section 122. This measure expires on July 24. If the tariffs are implemented as scheduled, pig iron imports from all countries of origin will be imported into the United States without additional duties from July 25, after it is excluded from the Section 301 measures.
This decision means that Brazilian pig iron will not be subject to a duty of 12.5%, which would otherwise apply to products from countries that are considered not to have sufficiently stringent measures against imports produced using forced labor. Indian pig iron was also exempt from duties, which avoided the introduction of a separate tariff of 10% applicable to countries that have imposed partial or complete restrictions on imports related to forced labor.
Without this exception, Brazilian pig iron would have faced tariffs of 12.5% after July 24, which would have put it at a disadvantage compared to suppliers such as Ukraine. Cast iron
Was not included in the original exclusion lists in any of the section 301 v. Brazil cases. The USTR later granted exemptions after American and Brazilian steel producers said alternative suppliers would not be able to replace Brazilian production volumes and that tariffs would increase U.
S. steel production costs.
Based on the planned cancellation of the 10% tariff and the currently excluded 12.5% tariff, cfr pig iron prices in New Orleans, which Argus last estimated at $495 per metric ton (t) on July 21, could drop by about $45 per ton to $450 per ton. This is also in stark contrast to the potential price increases if a 12.5% per ton tariff were introduced, which could raise the price of cfr pig iron in New Orleans to $507 per ton.
USTR also exempted Brazilian pig iron from a separate proposed 25% tariff under Section 301 on July 15.
Brazil provided 59% of American pig iron imports, or 1.3 million tons, in January-May. The country has consolidated its position as a leading supplier of pig iron to the U.
S. market since 2022, when sanctions imposed in connection with the war between Russia and Ukraine suspended supplies from Russia. Despite the fact that Ukraine and India have expanded their presence in the US market in recent months, market participants note that none of these countries
