USTR Imposes 25% Section 301 Tariff on Imports from Brazil

The Office of the U.S. Trade Representative (USTR) has imposed an additional 25% tariff on imports of Brazil. The additional duty applies to covered products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on July 22, 2026.

The action follows USTR’s determination under Sections 301(b) and 304(a) of the Trade Act of 1974 that certain Brazilian acts, policies, and practices are actionable. The investigation addressed digital trade and electronic payment services, unfair preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation.

Background

The USTR initiated the investigation on July 15, 2025. Last month, on June 1, 2026, the USTR determined that certain Brazilian acts, policies, and practices were unreasonable or discriminatory, burdened or restricted U.S. commerce, and were actionable under Section 301. The USTR proposed a 25% tariff on all goods from Brazil, subject to specified exemptions, and invited public comment. Following more than 360 written submissions, a two-day public hearing, and continued consultations with Brazil, the USTR determined that a 25% tariff on all imports from Brazil, with certain exemptions, was the appropriate response.

The action is implemented through new HTSUS heading 9903.05.01, which imposes an additional 25% ad valorem duty on articles that are products of Brazil. Unless otherwise provided in U.S. Note 50, the duty applies in addition to ordinary customs duties, other applicable Chapter 99 duties, and any applicable antidumping duties, countervailing duties, taxes, fees, exactions, and other charges.

Limited In-Transit Exception

HTSUS heading 9903.05.02 provides an exception for articles that:

• were loaded onto a vessel at the port of loading and were in transit on the final mode of transit before entry into the United States before 12:01 a.m. Eastern Time on July 22, 2026
• are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. Eastern Time on July 29, 2026.

Exemptions

The final action establishes exemptions through HTSUS headings 9903.05.02 through 9903.05.09 and U.S. Note 50. The principal exemption categories include:

• articles classified under specified HTSUS subheadings
• specifically described products identified in the annexes
• qualifying civil aircraft, engines, parts, components, subassemblies, and ground-flight simulators
• specified articles for use in pharmaceutical applications
• designated aluminum, steel, copper, automotive, medium- and heavy-duty vehicle, wood, and semiconductor articles identified in U.S. Note 50(a)(vi)
• donations intended to relieve human suffering
• informational materials
• products for personal use included in accompanied baggage

Compared with the proposed action, USTR retained most exemptions but removed high-purity dissolving pulp and limited certain chemical-product exemptions to pharmaceutical applications. USTR also added exemptions for products including aluminum hydroxide, antiques, collectibles and art, ash containing precious metals or precious-metal compounds, certain animal hides, fur skins and leather, certain seafood, additional pharmaceuticals and pharmaceutical ingredients, certain wood products, iron and steel waste and scrap, organic honey, pig iron, unflavored instant coffee, and used clothing.

Because many exemptions are defined by specific tariff classifications, product descriptions, or use limitations, importers should review U.S. Note 50 and the applicable annexes before determining that a product is exempt.

Considerations for Importers

Importers of merchandise from Brazil should:

• review and confirm accurate HTSUS product classification
• analyze U.S. Note 50 and the annexes for any applicable exemptions
• evaluate the application of other Section 301, antidumping, countervailing, or additional duties
• coordinate with customs brokers regarding the appropriate Chapter 99 reporting

Contact Clark Hill

If you have questions regarding the content of this alert, please contact any member of Clark Hill’s International Trade Practice:

• Mark Ludwikowski (mludwikowski@clarkhill.com; 202.640.6680)
• Kevin Williams (kwilliams@clarkhill.com; 312.985.5907)
• Kelsey Christensen(kchristensen@clarkhill.com; 202.230.9889)
• Aristeo Lopez (alopez@clarkhill.com; 202.552.2366)
• Ashley Gifford (agifford@clarkhill.com; 202.640.6655)
• Laura M. Quesada(Lquesada@clarkhill.com; 202.240.0170)
• Amal Sheheen (asheheen@clarkhill.com; 202.552.2354)
• Onjoly Purification (Opurification@clarkhill.com; 202.552.2361)

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