The Office of the U.S. Trade Representative (USTR) announced on July 15, 2026, that the United States will impose a 25% ad valorem tariff on certain imports from Brazil. The new tariffs apply to goods entered for consumption, or withdrawn from warehouse for consumption, effective 12:01 a.m. EST on July 22. A temporary "goods on the water" provision exempts qualifying merchandise that was loaded onto a vessel at the port of loading and in transit on its final mode of transportation by 12:01 a.m. EST on July 22, provided the goods are entered for consumption by 12:01 a.m. EST on July 29.
This action follows a year-long Section 301 investigation, during which the USTR determined that certain Brazilian measures related to digital trade and electronic payment services, unfair preferential tariff treatment, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation are unreasonable or discriminatory and burden or restrict U.S. commerce. USTR also noted that the decision was supported by more than 360 public comments received during the investigation, as well as extensive negotiations with the Brazilian government that failed to fully resolve the United States' concerns.
Certain products will be exempt from the additional 25% duty, including oranges, orange juice, beef, coffee, certain energy products, and certain aerospace parts. The final action also expands the list of exempt products beyond those originally proposed. Newly exempt products include aluminum hydroxide; antiques, collectibles, and works of art; ash containing precious metals or precious metal compounds; certain animal hides, furskins, and leather; certain seafood products; additional pharmaceuticals and pharmaceutical ingredients; certain wood products; iron and steel waste and scrap; organic honey; pig iron; unflavored instant coffee; and used clothing.
However, some products that had been proposed for exemption will not receive relief under the final action. These include high-purity dissolving pulp and non-pharmaceutical applications of cellulose and phosphoaminolipids, which will be subject to the additional 25% duty. Acai preparations are only exempt when imported for pharmaceutical purposes, although certain acai products remain listed as fully exempt under specific HTS classifications.
Ethanol imports from Brazil will also be subject to the additional tariff. U.S. officials stated that Brazil eliminated reciprocal treatment for U.S. ethanol and effectively restricted market access for American ethanol producers.
The additional 25% Section 301 duty will not apply to products already subject to Section 232 tariffs, including steel, aluminum, copper and their derivative articles, automobiles, medium- and heavy-duty trucks, wood products, and semiconductors. Beginning July 31, patented pharmaceuticals subject to the Section 232 tariffs will also be excluded from the additional Section 301 duty.
Humanitarian donations, including food, clothing, and medicine donated by persons subject to the jurisdiction of the United States for humanitarian relief purposes as well as informational materials, including publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact discs, CD-ROMs, artworks, and news wire feeds, are exempt from the additional duty.
Goods admitted into Foreign Trade Zones on or after July 22 that are subject to these tariffs must be admitted under privileged foreign status. While the notice does not specifically address drawback, Section 301 duties are generally eligible for drawback under existing regulations.
The Brazil Section 301 tariffs do not include an exemption for products that may become subject to the separate Section 301 forced labor investigation. If the proposed 12.5% forced labor tariff is finalized and implemented, affected Brazilian products could be subject to both Section 301 duties, potentially resulting in a combined 37.5% additional duty.
Please refer to the links below for the Federal Register notice and complete details on the scope of the action, applicable exclusions, and the list of affected HTS classifications: