The Office of the U.S. Trade Representative (USTR) has announced a new 25% Section 301 tariff on most products of Brazil, effective July 22, 2026.

The additional duty applies to covered goods entered for consumption, or withdrawn from warehouse for consumption, at or after 12:01 a.m. ET on July 22. Importers must report new Harmonized Tariff Schedule of the United States (HTSUS) heading 9903.05.01 for merchandise subject to the tariff.

Goods loaded onto the final vessel and already in transit before the effective time may qualify for an exception if they are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. ET on July 29. This exemption does not apply to air or border crossings.

USTR has established several exemptions, including:

  • Products classified under HTSUS provisions specifically identified in the notice
  • Civil aircraft and qualifying aircraft parts and components
  • Certain products used in pharmaceutical applications
  • Brazilian goods already covered by designated Section 232 tariffs, including certain metals, vehicles, vehicle parts, wood products, and semiconductors
  • Humanitarian donations and informational materials
  • Accompanied baggage intended for personal use
  • Most goods properly entered under Chapter 98

The exemption list includes products across numerous industries, and some exclusions contain specific use or scope limitations. Importers should review the HTSUS classifications and qualifying conditions in the full USTR notice rather than relying on general product descriptions alone.

USTR said the action follows a yearlong investigation into Brazilian policies and practices involving digital trade, electronic payment services, preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation.

Importers should review upcoming Brazilian shipments, confirm whether an exemption or the limited in-transit provision applies, and account for the additional duty when evaluating landed costs and customs bond sufficiency.

Shapiro will continue to monitor the situation and provide status updates as they become available.