USTR Imposes 25% Section 301 Tariff on All Brazilian Goods, with Certain Exemptions

Published July 17, 2026

Key Points

  • USTR announced on July 15, 2026, a 25% tariff under Section 301 of the Trade Act of 1974 on imports from Brazil.
  • The tariff takes effect at 12:01 a.m. ET on July 22, 2026, for goods entered for consumption or withdrawn from warehouse for consumption.
  • The tariff applies to all products of Brazil, except for products covered by the exclusions in the final rule, including goods already subject to certain Section 232 measures, civil aircraft and related parts, pharmaceutical products, humanitarian donations, informational materials, personal baggage, and products covered under the applicable Chapter 99 HTS provisions.
  • The action follows a year-long investigation into Brazilian practices involving digital trade and electronic payment services, preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation.
  • USTR determined on June 1, 2026, that these practices are unreasonable and burden or restrict U.S. commerce, making them actionable under Section 301(b).

O​​​​​​​​​​​​​​​​​​​​​​​​​​​n US and Brazil flags side by side, representing the new Section 301 tariff on Brazilian goodsJuly 15, 2026, the United States Trade Representative (USTR) announced that the U.S. will impose a 25% Section 301 tariff on Brazilian goods, effective 12:01 a.m. ET on July 22, 2026. The tariff follows a year-long investigation into Brazilian practices in digital trade, preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation, which USTR found unreasonable and restrictive to U.S. commerce. Ambassador Jamieson Greer said these practices have limited U.S. access to Brazil’s market of over 210 million consumers. Before finalizing the tariff, USTR held two public hearings, reviewed more than 360 comments, and held extensive talks with Brazil to resolve U.S. concerns, and says it remains open to further negotiations.

What’s Covered?

According to the Federal Register Notice, the 25% tariff applies to all imports from Brazil, with certain exemptions, starting 12:01 a.m. ET on July 22, 2026 (with a short transition window for goods already in transit), on top of existing duties and fees.

Key exemptions include goods already covered by Section 232 tariffs (steel, aluminum, copper, autos, wood products, semiconductors), civil aircraft and parts, pharmaceutical-use articles, humanitarian donations, informational materials, personal baggage, and a range of specific products such as aluminum hydroxide, antiques and art, certain hides and leather, seafood, wood products, and iron/steel scrap.

Statement from USTR

“Today’s action is necessary to address these unfair trade practices to ensure American workers and companies can compete on a level playing field. Extensive negotiations with Brazil over the past year have not resolved these issues, but we remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation.”
Jamieson Greer, USTR Ambassador

Investigation Timeline

  • July 15, 2025: USTR initiates investigation under Section 302(b)(1)(a)
  • July 15, 2025: USTR requests consultations with Brazil under Section 303(a)
  • September 3, 2025: First public hearing held
  • April 15–16, 2026: Consultations with Government of Brazil held
  • June 1, 2026: USTR determines practices are actionable under Section 301(b)
  • July 1, 2026: Deadline for public comments on proposed action (360+ received)
  • July 6–7, 2026: Second public hearing; 77 witnesses testified
  • July 15, 2026: USTR announces 25% tariff
  • July 22, 2026: Tariff takes effect at 12:01 a.m. ET

Background

Section 301 of the Trade Act of 1974 allows the U.S. to respond to foreign trade practices that are unjustifiable, unreasonable, or discriminatory and that burden U.S. commerce. At the President’s direction, USTR opened this investigation into Brazil in July 2025 and followed the standard process: investigation, consultation, public comment, and hearings, ending in this final determination.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.

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