Published by: Christian Willbern<>
3 Apr 2025 @ 22:28 UTC

The US’ new universal tariff on imported goods could increase costs and disrupt trade flows for Brazilian and Ukrainian pig iron imports, sources told Fastmarkets on Thursday April 3.

On Wednesday April 2, the Trump administration slapped a 10% universal tariff on imported goods from all countries, except for Canada and Mexico, according to a White House press release.
This comes despite the White House exempting Mexican and Canadian ferrous scrap — another key steelmaking ingredient — from the universal and reciprocal tariffs under the US-Mexico-Canada Agreement (USMCA).
The White House said the 10% base rate tariffs will take effect on Saturday April 5, whereas the higher reciprocal tariffs are expected to take effect on Wednesday April 9.
The 10% tariffs could add roughly $48.50- 52.50 per tonne to current pig iron basic grade, Brazil, fob New Orleans and pig iron basic grade, Ukraine/Russia, fob New Orleans prices, which Fastmarkets last assessed at $485-525 per tonne on Monday March 31, unchanged from the previous week.
The US imported 4.7 million tonnes of pig iron in 2024, according to US Census trade data.
US imports of Canadian pig iron accounted for 2.1% of total basic pig iron imports in 2024, whereas Ukrainian pig iron imports comprised 18% and Brazilian pig iron comprised 73.1% of US pig iron imports during the same period.
Trinidad and Tobago — the top direct-reduced iron (DRI) supplier for the US — is also subject to a 10% tariff on the country’s goods imported to the US.
The US imported 1.5 million tonnes of DRI in 2024, with Trinidad and Tobago-origin DRI comprising essentially all US DRI imports for the period.
UK-origin ferrous scrap imports will face 10% tariffs, while European ferrous scrap imports will face 20% tariffs.
Some sources expect US pig iron buyers to eat the additional costs, due to the material’s necessity for steel manufacturing.
Tariffs will be passed onto consumers, I am sure of it, one US source said.
I think the US needs the material, so we have no choice to pay it, a second US source said.
On the other hand, a third US source said, suppliers will have to absorb part or all of [the tariffs], but a fourth US source said the additional costs will be passed on, depending on already booked sales, and then the affiliated incoterm.
If you’re talking new sales [after April 5], I think it’s going to be very case by case. If you’re talking existing sales with pre-agreed incoterms, I could see some very painful disputes arising, the fourth US source continued.
Despite the additional costs, the first US source does not expect the tariffs to heavily impact pig iron demand/supply at this point.
[The tariffs] might reduce the amount [of pig iron] people use in their charge…but people will still need at least some of it, they said.
The fourth US source noted that US consumers could look toward pig iron alternatives in order to reduce costs.
There will be some rebalancing in the Midwest with Canadian scrap, I think; it will add a bit of ease with supply, they said.
I think people will start to look at domestic US [direct-reduced iron] and [hot-briquetted iron] and pig iron production here, they continued.
The fourth source noted, however, that the costs of production and costs of transportation [for the material] is what the issue is going to be for the US.