The Office of the United States Trade Representative (USTR) has issued a final Section 301 action imposing an additional 25% duty on products of Brazil, effective July 22, 2026.
The new duty applies to covered goods entered for consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on July 22. Product-specific exemptions are available; details can be found in CSMS # 69302472. Importers should confirm those exceptions against the relevant HTSUS classification, product description, Chapter 99 instructions, and any other applicable requirements.
The action comes after a USTR investigation into Brazil’s trade polices, begun in July 2025, determined that certain acts, policies, and practices under investigation are unreasonable or discriminatory and burden or restrict U.S. commerce, and thus are actionable under Section 301(b) of the Trade Act. At issue are Brazil’s policies related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption enforcement; intellectual property protection; ethanol market access; and illegal deforestation.
Recommended Actions
Clients importing products of Brazil should review current and near-term shipments to determine whether the new Section 301 tariff applies and whether any exemption may be available.
Next steps
- Identify open, in-transit, warehoused, and scheduled shipments involving products of Brazil.
- Confirm whether entries or warehouse withdrawals will occur on or after July 22, 2026.
- Review HTSUS classifications, product descriptions, and any applicable Chapter 99 instructions.
- Confirm whether a listed exemption applies before excluding goods from the additional duty.
- Validate country of origin support and assess potential impacts to duty outlay and bond sufficiency.
Additional details can be found at the following:
General questions may be directed to your Livingston account manager.