By Betsy Myers

Quick Facts

What is a Section 301 tariff?
A Section 301 tariff is an additional duty imposed by the United States in response to unfair foreign trade practices that negatively affect U.S. commerce.
What is the new tariff rate, and when does it take effect?
Most goods imported from Brazil will be subject to an additional 25% Section 301 tariff for goods entered for consumption on or after July 22, 2026. Special rules also apply to goods in transit and those entering U.S. Foreign Trade Zones.
Why did the U.S. impose tariffs on Brazil?
The U.S. determined that certain Brazilian policies and practices were unreasonable or discriminatory and continued to burden American commerce despite consultations. Following a Section 301 investigation, the Administration concluded that additional trade measures were necessary to address those concerns.
Which products are exempt?
Certain products are exempt to help protect U.S. industries and supply chains. Generally, exemptions apply to essential raw materials, products with limited domestic availability, goods that cannot be sourced easily from other countries, and products that would not significantly advance the goals of the Section 301 action.
What should importers do now?
Importers should review the published exemption lists to determine whether their products qualify, evaluate how the tariffs may affect costs and profit margins, verify customs classifications and import documentation, and consider whether supply chain adjustments are necessary. Staying compliant with customs requirements will be essential as the policy takes effect.

The United States has announced a significant trade action that will affect businesses importing goods from Brazil. Following a Section 301 investigation, the U.S. government will impose an additional 25% tariff on most Brazilian imports, while exempting selected products that are considered essential to the U.S. economy. The tariff applies to goods entered for consumption on or after July 22, 2026, with specific rules for goods in transit and foreign trade zones.

Whether you’re an importer, manufacturer, distributor, or supply chain professional, understanding these changes is critical. In this guide, we’ll explain why the tariffs were introduced, which products are exempt, and what your business should do next.

What Is Section 301?

Section 301 of the Trade Act of 1974 is one of the U.S. government’s primary tools for addressing unfair trade practices.

When the Office of the United States Trade Representative (USTR) determines that another country’s policies unfairly harm U.S. businesses or restrict American commerce, it can recommend trade actions such as:

  • Additional import tariffs
  • Import restrictions
  • Suspension of trade benefits
  • Other enforcement measures authorized under U.S. trade law

The goal is simple: encourage trading partners to eliminate practices that negatively affect U.S. businesses while promoting fair international trade.

Why Is the U.S. Imposing Tariffs on Brazil?

On June 1, 2026, the U.S. Trade Representative determined that certain Brazilian acts, policies, and practices were unreasonable or discriminatory and placed a burden on U.S. commerce.

Although the United States continued discussions with the Brazilian government, those consultations did not resolve the concerns. As a result, the USTR concluded that additional trade measures were necessary under Section 301.

What Was the Final Decision?

After reviewing public comments, industry feedback, and recommendations from the Section 301 Committee, the President directed the U.S. Trade Representative to implement the following:

  • A 25% tariff on most goods imported from Brazil
  • Exemptions for specific products that are vital to U.S. industries and supply chains

The Administration determined that this approach strikes the right balance between enforcing U.S. trade laws and minimizing unnecessary economic disruption.

Why Are Some Products Exempt?

Not every Brazilian product will be subject to the new tariffs.

The USTR identified several categories of products that should remain exempt because tariffs could unintentionally harm U.S. businesses or consumers.

These exemptions generally include products that:

  • Are critical raw materials with limited domestic supply
  • Cannot be produced in sufficient quantities within the United States
  • Cannot be sourced easily from other countries
  • Would do little to encourage changes in Brazil’s trade practices

By exempting these products, the government aims to maintain pressure on Brazil while protecting key sectors of the U.S. economy.

Why Didn’t the U.S. Choose a Different Approach?

Before finalizing the decision, the Administration considered several alternatives, including:

  • Lower tariff rates
  • Continued negotiations without tariffs
  • Trade actions under other legal authorities

After weighing the potential economic impact and effectiveness of each option, the President concluded that a 25% tariff with targeted exemptions would be the most effective way to address the identified trade concerns.

How Will These Tariffs Affect Importers?

If your business imports products from Brazil, these changes could have a direct impact on your costs and operations.

Now is a good time to:

  • Review whether your imported products qualify for an exemption.
  • Evaluate how the tariffs may affect pricing and profit margins.
  • Update landed cost calculations.
  • Assess alternative sourcing options where practical.
  • Ensure customs classifications and import documentation are accurate.
  • Stay informed about future USTR announcements and policy updates.

Planning ahead can help minimize disruptions and avoid unexpected costs.

What About Foreign Trade Zones?

The new rules also apply to goods entering U.S. Foreign Trade Zones (FTZs).

Most Brazilian products subject to the additional tariff must be admitted under privileged foreign status, meaning the applicable duty rate is locked in when the goods enter the FTZ. This prevents businesses from avoiding the tariff through later processing or tariff reclassification.

Stay Ahead of Changing Trade Regulations

Trade policies can change quickly, and even small regulatory updates can have a significant impact on your business. Staying informed is essential to managing costs, maintaining compliance, and avoiding unnecessary delays.

If your company imports goods from Brazil, now is the time to review your product classifications, confirm whether your imports qualify for exemptions, and evaluate how these tariffs may affect your supply chain strategy.

Need help navigating Section 301 tariffs or understanding their impact on your imports? Schedule a no-charge consultation with one of our trade compliance professionals today to ensure your business remains compliant and prepared for the latest regulatory changes.