31.07.2026 Regulation #USA #Import #Duties
US sets 25% tariff on Brazilian goods, effective July 22, 2026
On July 15, 2026, the US president signed a memorandum directing Trade Representative Jamieson Greer to impose an additional 25% tariff on goods of Brazilian origin, closing out an investigation into Brazil's trade practices under Section 301 of the Trade Act of 1974. The duty itself, however, does not kick in immediately: per USTR's final Notice of Action, it applies to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 eastern time on July 22, 2026, as set out in Annex I to the notice (USTR, final Notice of Action).
Scope and grounds of the investigation
The investigation was launched on July 15, 2025, and USTR issued its final determination on June 1, 2026, concluding that certain Brazilian acts, policies and practices are "unreasonable" and burden or restrict US commerce (USTR press release). The findings span six areas:
- digital trade and electronic payment services;
- unfair, preferential tariffs granted by Brazil to third countries;
- weak anti-corruption enforcement;
- intellectual property protection;
- restricted market access for US ethanol;
- illegal deforestation.
USTR published its formal notice of proposed action and request for comments in the Federal Register on June 4, 2026 (document 2026-11158, citation 91 FR 33854) (Federal Register). Public hearings followed on July 6–7, 2026, with 77 witnesses testifying and more than 360 written comments submitted overall (USTR press release).
Why the exemption list matters more than the headline rate
Under the final notice, the 25% rate is not a blanket surcharge on all Brazilian imports. USTR kept essentially all the exemptions proposed in the June 2026 draft annex, dropping only high-purity dissolving pulp and the non-pharmaceutical applications of certain chemical products from the exempt list. At the same time, USTR added new exemptions in the final version, including aluminum hydroxide; antiques, collectibles and art; certain animal hides, furskins and leather; certain seafood products; certain additional pharmaceuticals; certain wood products; iron and steel waste and scrap; organic honey; pig iron; unflavored instant coffee; and used clothing (USTR, final Notice of Action).
According to logistics provider Green Worldwide — citing the earlier draft annex rather than USTR's final document — the exclusion list runs to more than 1,200 HTSUS subheadings, of which roughly 430 lines are dedicated carve-outs for civil aircraft goods (Green Worldwide). Either way, importers need to check their specific tariff lines against Annex I and Annex II of the final notice rather than assume the general 25% figure applies across the board.
What it means for importers and Brazilian exporters
Announcing the measure, Ambassador Greer said "Brazil's unfair trading practices have prevented U.S. workers and producers from accessing this important market with over 210 million consumers" (USTR press release). For companies importing Brazilian goods, the immediate task is to check whether a given tariff line falls under the new duty or sits on the Annex I/II exemption list, then adjust contracts and logistics before the measure takes effect. USTR also clarified the treatment of goods held in US foreign trade zones: any Brazilian product subject to the new duty may only be admitted to a zone under "privileged foreign status," unless it qualifies for "domestic status," effective as of the date the additional duty is imposed (USTR, final Notice of Action).
What businesses need to do before the deadline
The sequence runs as follows: the investigation opened on July 15, 2025; the final determination on actionability was issued on June 1, 2026; the notice proposing the action was published in the Federal Register on June 4, 2026; public hearings were held on July 6–7, 2026; the presidential memorandum and USTR's final notice imposing the 25% tariff are dated July 15, 2026; and the duty itself begins to apply to goods entered for consumption on or after 12:01 eastern time on July 22, 2026 (USTR press release; USTR, final Notice of Action).
Primary sources
- USTR Press Release: Section 301 Action on Brazil
- Federal Register: Notice of Determination and Request for Comments (Brazil Section 301)
- USTR: Notice of Action — Brazil Section 301 (Final)
- Green Worldwide: USTR Proposes 25% Section 301 Tariff on Brazilian Goods
This material is for information only and does not constitute legal advice or customs consulting. Verify changes against the primary sources before acting.