USTR imposes 25% Section 301 tariffs on Brazil imports

USTR issued final action in its Section 301 investigation of Brazil and imposed an additional 25% tariff on all imports from Brazil, with certain exemptions. The notice states that the Trade Representative found certain Brazilian acts, policies, and practices actionable and determined that tariff action is appropriate.

The action is taken under Sections 301(b), 301(c), and 304(a) of the Trade Act of 1974. The notice says the tariff applies to all goods of Brazil except goods excluded in Annex I and Annex II, including products that USTR determined should be exempt because of domestic supply, economy-wide disruption, limited alternative sourcing, or limited usefulness of tariffs for addressing the actionable conduct.

The additional duty applies to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 eastern time on July 22, 2026. The notice also states that covered Brazilian products admitted into a U.S. foreign trade zone, unless eligible for domestic status, may be admitted only in privileged foreign status as of the date the additional duty is imposed.

The notice explains that USTR kept most proposed exemptions, removed high-purity dissolving pulp from the exemption list, and limited certain chemical product exemptions to pharmaceutical applications. It also added exemptions for some products, including aluminum hydroxide, certain seafood products, certain additional pharmaceuticals and pharmaceutical ingredients, certain wood products, pig iron, unflavored instant coffee, and used clothing.