The United States has announced a new round of 25% tariffs on thousands of Brazilian imports, with the measures scheduled to take effect on 22 July 2026. The action represents the first new tariffs imposed under Section 301 of the Trade Act of 1974 since the US Supreme Court limited the administration’s broader tariff authority earlier this year.
The decision marks a significant development in US trade policy, highlighting a renewed reliance on Section 301 investigations as the primary legal mechanism for imposing unilateral trade measures.
Section 301 Investigation Led to New Tariffs
The tariffs follow a year-long investigation conducted by the Office of the United States Trade Representative (USTR) into Brazil’s alleged unfair trade practices.
According to the US government, the investigation identified concerns relating to:
- Digital trade barriers
- Restrictions affecting market access for US businesses
- Policies linked to illegal deforestation and their impact on trade
Based on these findings, the United States concluded that additional trade measures were warranted.
Products Subject to the New Duties
The new 25% tariffs will apply across a broad range of Brazilian exports entering the US market.
Products affected include:
- Sugar
- Apparel and textiles
- Paper products
- Steel and selected manufactured goods
The measures expand the list of Brazilian products subject to additional US import duties and are expected to affect numerous exporters serving the American market.
Strategic Products Excluded from the Tariffs
Despite the broad scope of the measures, the United States has excluded several strategically important imports from the new tariff regime.
The exemptions include:
- Beef
- Coffee
- Rare-earth materials
- Aircraft parts
- Certain oil and gas products
These exclusions are considered significant, particularly as US consumers have experienced substantial increases in beef and coffee prices over the past year. By excluding these products, the administration appears to be seeking to minimise additional inflationary pressure while maintaining leverage in the broader trade dispute.
Brazil Rejects US Allegations
Brazil has rejected the allegations underpinning the Section 301 action, arguing that the investigation is politically motivated rather than based on legitimate trade concerns.
The latest measures come despite more than 30 rounds of trade negotiations between Washington and Brasília during the past year, underscoring the growing strain in bilateral trade relations.
The dispute adds another layer of uncertainty for businesses engaged in cross-border trade between the two countries.
Separate Forced Labour Investigation Still Pending
Trade tensions could intensify further in the coming weeks.
Brazil is also the subject of a separate Section 301 investigation concerning alleged forced labour issues, with a decision expected later this month. Any additional findings could result in further trade restrictions or new tariff measures affecting Brazilian exports.
Businesses Should Monitor Supply Chain Impacts
The renewed use of Section 301 demonstrates how the United States is adapting its trade enforcement strategy following recent judicial constraints on broader tariff powers.
For multinational companies, importers and supply chain managers, the development reinforces the importance of closely monitoring evolving US trade policy, customs compliance obligations and sourcing strategies. Companies importing products from Brazil should assess whether the new tariffs affect their operations and evaluate potential mitigation measures before the duties take effect on 22 July 2026.