The decision is reported to have created significant uncertainty, particularly for Brazilian producers.
Brazil’s Minas Gerais region exported 2.47 million metric tons (mt) of pig iron to the United States in 2025, generating approximately $1.01 billion in revenue. During the first four months of 2026, the region exported 644,700 mt of pig iron, generating $258 million in export earnings.
It was noted that approximately 85% of the pig iron production from Sete Lagoas, one of Brazil’s key production hubs, has historically been shipped to the U.S. market. The new tariff measure is therefore expected to disrupt this long-established trade flow.
With the introduction of the 25% tariff, Brazilian suppliers may be forced to seek alternative export markets. This could increase global supply availability and place downward pressure on prices in international markets.
At the same time, U.S. buyers could face tighter supply conditions, potentially leading to higher raw material costs and increased procurement challenges.
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