US tariffs could shut over half of Brazil's pig iron plants

The United States has proposed new import duties on Brazilian pig iron—an initial 25% rate plus an additional 12.5% surcharge that could total 37.5%. The Sindifer of Minas Gerais warns that the measures could force about 55% of Brazil’s pig iron furnaces to cease operation, threatening more than 60,000 direct and indirect jobs, most of them in the state of Minas Gerais.

Minas Gerais produces roughly 70% of Brazil’s pig iron, with 48 plants and 63 furnaces delivering about 420,000 tonnes per month; the city of Sete Lagoas alone hosts 21 facilities. The United States is Brazil’s largest buyer of pig iron, accounting for over 80% of exports. Public hearings on the tariff proposal are scheduled for 6 July, with decisions expected by 15 July. To mitigate the impact, Sindifer has hired a U.S. law firm and will attend the hearings to seek an exemption for Brazilian pig iron.

If implemented, the tariffs could lower Brazil’s export earnings, reduce GDP, and undermine the competitiveness of its steel sector.