U.S. Section 301 Determination on Brazil – Potential Tariff Actions and Compliance Considerations

Background

On June 1, 2026, the Office of the United States Trade Representative (USTR) issued a formal determination under Section 301 of the Trade Act of 1974 concluding that certain acts, policies, and practices of the Government of Brazil are unreasonable or discriminatory and burden or restrict U.S. commerce. This determination follows a year-long investigation initiated in July 2025 and reflects longstanding U.S. concerns across multiple sectors and regulatory frameworks.

Key Findings

The USTR identified several core areas of concern, including Brazil’s regulation of digital trade and electronic payment services, its use of preferential or non-uniform tariff structures, enforcement practices related to anti-corruption measures, gaps in intellectual property protection, restrictions impacting U.S. ethanol market access, and policies associated with illegal deforestation. These findings collectively represent systemic barriers to U.S. companies rather than isolated product-level issues.

Proposed Trade Measures

As a result of this determination, USTR has proposed responsive action under Section 301, which may include the imposition of additional duties on imports from Brazil. While the specific tariff measures have not yet been finalized, public reporting indicates that duties of up to approximately 25 percent on a broad range of Brazilian-origin goods are under consideration. These proposed measures remain subject to the statutory notice-and-comment process prior to implementation.

Process and Key Dates

USTR has initiated a formal public comment process to inform the scope and application of any proposed action. Interested parties may submit written comments through July 1, 2026, and requests to appear at the public hearing are due by June 22, 2026. A public hearing is scheduled for July 6, 2026. Under the Section 301 statutory framework, USTR is expected to finalize its determination and any corresponding measures by July 15, 2026. During this period, the United States has indicated it will continue engagement with the Government of Brazil in an effort to resolve outstanding issues.

Client Impact

This development introduces potential tariff exposure across a broad cross-section of industries with supply chain reliance on Brazilian-origin goods. Unlike more targeted trade actions, the breadth of this determination reflects structural trade and regulatory concerns that may translate into wide-ranging duty implications if implemented. In addition, several of the identified issues—particularly those relating to digital trade and environmental policy considerations—extend beyond traditional tariff measures and may introduce indirect compliance, sourcing, and operational risks.

Recommended Actions

Companies with sourcing, manufacturing, or commercial activity tied to Brazil should evaluate their exposure to Brazilian-origin imports, including a detailed review of HTS classifications, country of origin determinations, and applicable duty programs. Organizations may also consider participation in the public comment process if their operations could be materially affected by the proposed measures. Proactive scenario planning and supply chain review are strongly advised in advance of potential implementation.

CWW Advisory

Crane Worldwide Logistics – Trade Consulting will continue to monitor developments associated with this Section 301 action, including the release of proposed tariff lists, potential exclusions, and final implementation guidance. Additional advisory updates will be issued as more information becomes available.

Disclaimer

This advisory is provided for informational purposes only and does not constitute legal advice. Importers should evaluate their specific compliance obligations based on their product portfolio and consult appropriate professionals as needed.

If the proposed Section 301 tariffs on Brazil may impact your import operations or supply chain strategy, our Trade Consulting team is available to support you. We can assist with tariff exposure assessments, HTS classification reviews, country of origin analysis, scenario planning, and participation in the public comment process. Our team also provides guidance on duty mitigation strategies, sourcing adjustments, and compliance readiness to help you navigate potential changes. Contact Crane Trade Services to assess your risk and prepare for potential implementation ahead of the July 2026 decision timeline.