Following a two-day public hearing on July 6–7, the Office of the U.S. Trade Representative (USTR) is expected to decide by July 15, 2026, whether to impose a proposed 25% Section 301 tariff on many imports from Brazil.
While the proposal includes significant product exclusions, companies importing Brazilian goods have only a short window to evaluate their exposure before USTR issues its final determination.
Importantly, this is not the same action as the IEEPA-based Brazil tariffs announced in 2025. Those duties were imposed under the International Emergency Economic Powers Act (IEEPA), while the current proposal is based on Section 301 of the Trade Act of 1974—the same legal authority used for the long-running Section 301 tariffs on Chinese imports.
Why Is Brazil Being Investigated?
USTR initiated the Section 301 investigation on July 15, 2025, at the direction of the President. The investigation examined several Brazilian acts, policies, and practices that the United States believes burden or restrict U.S. commerce, including:
- Digital trade and electronic payment services
- Preferential tariff arrangements
- Anti-corruption enforcement
- Intellectual property protection
- Ethanol market access
- Illegal deforestation
On June 1, 2026, USTR determined that several of Brazil’s practices are unreasonable or discriminatory under Section 301, including certain preferential tariff arrangements with trading partners such as India and Mexico. The proposed action was published in the Federal Register on June 4.
What Tariffs Has USTR Proposed?
USTR has proposed an additional 25% ad valorem tariff on many imports from Brazil.
However, the proposal also includes substantial exclusions.
Products proposed for exclusion include:
- Goods already subject to Section 232 tariffs, including steel, aluminum, and copper
- More than 1,200 HTS subheadings covering products such as beef, coffee, energy products, and aircraft components
- Hundreds of additional aviation-related products, reflecting Brazil’s significant role in the global aerospace supply chain
Written comments closed on July 1, and USTR conducted public hearings on July 6–7. Although the hearings were not livestreamed, USTR is expected to publish the official hearing transcript.
What Happens Next?
Because the investigation began on July 15, 2025, Section 301 requires USTR to determine what responsive action to take within one year.
That places the statutory deadline on July 15, 2026.
USTR may:
- Implement the proposed 25% tariff as written
- Modify the tariff or exclusion list before implementation
- Take another responsive action based on the hearing record and public comments
Any announcement could come quickly following the close of the hearing.
Frequently Asked Questions
Are the proposed Brazil tariffs in effect?
No. The tariffs have been proposed but have not been finalized.
When will USTR make its decision?
The Trade Act requires USTR to determine responsive action by July 15, 2026.
Which products may be excluded?
The proposal currently excludes more than 1,200 HTS subheadings, including many products in the agriculture, energy, and aerospace sectors, as well as goods already covered by Section 232 tariffs.
How is this different from the Brazil tariffs announced in 2025?
The 2025 Brazil tariffs were imposed under IEEPA. This proposal is based on Section 301 of the Trade Act of 1974, a separate legal authority used to address unfair foreign trade practices.
What Should Importers Do Now?
With only a short period remaining before USTR’s decision, importers should:
- Review Brazilian-origin products against the proposed exclusion list.
- Verify HTS classifications to determine whether products qualify for a proposed exemption.
- Confirm whether imported goods are already subject to Section 232 tariffs, which would generally remove them from the scope of this proposal.
- Evaluate contract pricing, sourcing strategies, and inventory planning in the event the tariffs are finalized.
- Closely monitor USTR announcements leading up to the July 15 deadline.
Why This Matters
Although the proposed tariffs are not yet final, the July 15 deadline leaves little time for businesses to prepare.
Even companies whose products currently appear on the proposed exclusion list should continue monitoring the investigation, as USTR could modify the final scope before issuing its determination.
The Brazil investigation is also part of a broader expansion of Section 301 activity, alongside ongoing investigations involving Vietnam and the proposed forced labor tariffs covering 60 economies. Together, these actions signal an increasingly active use of Section 301 as a trade enforcement tool.
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Understanding proposed trade actions before they take effect can help businesses avoid unexpected costs and make informed sourcing decisions. Alba’s trade compliance experts help importers evaluate Section 301 exposure, review HTS classifications against proposed exclusion lists, and develop duty mitigation strategies before final actions are implemented.
