Trade Advisory: U.S. Finalizes Section 301 Action on Brazil – 25% Additional Duty Effective July 22, 2026

Executive Summary

On July 15, 2026, USTR finalized a Section 301 action against Brazil and announced a 25% additional tariff on most Brazilian origin imports effective July 22, 2026. The action follows findings that certain Brazilian policies and practices burden U.S. commerce. Numerous product-specific exclusions were granted to protect critical supply chains and essential industries.

Why the Tariffs Are Being Imposed

USTR is levying the Section 301 tariffs in response to Brazil’s acts, policies, and practices involving digital trade and electronic payment services; unfair or preferential tariff treatment; anti-corruption enforcement; intellectual property protection; ethanol market access; and illegal deforestation. USTR determined that the practices under investigation are unreasonable or discriminatory and burden or restrict U.S. commerce. The additional duty is intended to create leverage for policy changes while preserving targeted exclusions for products tied to critical U.S. supply needs.

Key Measure

Beginning July 22, 2026, covered imports from Brazil will be subject to an additional 25% ad valorem duty unless specifically excluded under the published annexes.

Key Exclusions

Exclusions include certain pharmaceutical products and ingredients, selected industrial raw materials, aluminum hydroxide, pig iron, certain scrap materials, organic honey, unflavored instant coffee, certain seafood and wood products, used clothing, antiques, artwork, donations, and informational materials. Importers should verify eligibility using the HTS-based exclusion lists. The following products of Brazil are excluded from these measures: articles of aluminum, steel, or copper, derivative aluminum and steel articles, passenger vehicles, light trucks and their parts, medium- and heavy-duty vehicles and their parts, wood products, and semiconductor articles.

In-Transit Exception

In addition, products of Brazil that would otherwise be subject to the additional duties may qualify for the in-transit exception if both of the following conditions are met: (1) The goods were loaded onto a vessel at the port of loading and were in transit on the final mode of transportation to the United States before 12:01 a.m. Eastern Time on July 22, 2026; and (2) The goods are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. Eastern Time on July 29, 2026.

Notable Changes

USTR removed high-purity dissolving pulp from the exclusion list and limited some chemical exclusions to pharmaceutical applications. These changes followed extensive public comments and hearings.

Business Impacts

Companies sourcing from Brazil should evaluate landed-cost increases, supply-chain risks, and potential sourcing alternatives. Manufacturing, chemicals, food, metals, consumer products, transportation, and aviation sectors may experience the greatest exposure.

Recommended Actions

Review Brazilian-origin imports and HTS classifications, assess duty exposure, confirm exclusion eligibility, evaluate in-transit shipments, update cost models, and monitor future USTR actions that may modify the measure.

Bottom Line

The new Section 301 measure represents a significant increase in duties on Brazilian-origin goods. Importers should immediately assess exposure and determine whether any products qualify for exclusion before the July 22, 2026 effective date.

Disclaimer

This advisory is for informational purposes only and does not constitute legal or customs advice. Companies should review the official Federal Register notice and consult qualified trade counsel regarding their specific circumstances.

With the additional 25% Section 301 tariff on most Brazilian-origin imports becoming effective July 22, 2026, now is the time to evaluate your import portfolio, validate HTS classifications, review exclusion eligibility, and identify potential cost impacts across your supply chain. Crane Worldwide Logistics' Trade Compliance experts can help you navigate these changes, assess duty exposure, and develop strategies to mitigate risk and control landed costs. Contact our Trade Compliance team today to discuss how these new tariffs may affect your business and explore available options to reduce impact.