US Imposes New 10% and 12.5% Tariffs on 60 Trading Partners Under Section 301

The United States has enacted sweeping new tariffs of 10% and 12.5% on imports from 60 trading partners, citing inadequate enforcement against forced labor. The measure, enacted under Section 301 of the Trade Act of 1974, follows the expiration of earlier temporary duties and impacts a broad spectrum of global supply chains.

Scope of Section 301 Tariffs and Country Classifications

The new trade policy divides affected nations into distinct tariff tiers. A 10% import duty now applies to goods from 18 economies, including India, the United Kingdom, Canada, Malaysia, and Pakistan. Meanwhile, the European Union, Japan, South Korea, Taiwan, and Switzerland face blended rates that bring total duties up to 10% or 12.5% when combined with most-favored-nation rates. China and 37 other nations have been assigned the maximum rate of 12.5%.

Despite the broad reach of the policy, the White House has incorporated numerous exemptions for specific commodities. Trade representatives confirmed that these measures will not breach existing caps outlined in bilateral trade agreements, preserving core trade frameworks while targeting specific supply chain practices.

Strategic Exemptions for Merchant Pig Iron and Domestic Reliance

Significantly, the U.S. administration has exempted Brazilian and Indian pig iron imports from the new Section 301 duties. This carve-out underscores the critical dependence of American steel manufacturers on foreign merchant pig iron. Data from the Office of the U.S. Trade Representative indicates that over 95% of domestic pig iron production is consumed by integrated steelworks. Consequently, independent foundries and electric arc furnace operators depend heavily on overseas shipments, shielding these vital raw material inflows from punitive trade penalties.

Market Impact

○ Impacted Metals: Pig iron, merchant pig iron, cast iron

○ Direction: Volatile

○ Time Horizon: Near-term

○ Affected Industries: Steelmaking, Foundries, Manufacturing, Automotive, Trade

○ Related Price Reports: Stainless Steel Weekly Price Report

○ Watch Item: Monitor USTR trade compliance updates and foundry feedstock procurement shifts resulting from Section 301 exemptions.

SuperMetalPrice Commentary:

The selective exemption of Brazilian and Indian pig iron highlights the fragile supply balance facing U.S. electric arc furnace operators. Trade policy adjustments will continue to shape regional raw material costs and import dependencies.