A New Tariff Era Begins — With Brazil in the Crosshairs
On July 22, 2026, the United States will begin collecting a 25% tariff on thousands of products imported from Brazil — and if you think this is an isolated bilateral dispute, think again. The Brazil action is the opening move in what the Trump administration openly describes as a sweeping, permanent replacement for the sweeping tariff program struck down by the US Supreme Court earlier this year. A second wave covering up to 60 trading partners — accounting for the vast majority of everything the US imports — is expected within days or weeks. For importers, customs teams, and anyone managing a cross-border supply chain, the window to plan is closing fast.
What Just Happened: The Brazil Section 301 Action
The legal foundation here is Section 301 of the Trade Act of 1974, which authorizes the United States Trade Representative to impose tariffs on countries found to have engaged in unfair trade practices — without requiring additional congressional authorization.
The USTR initiated a formal Section 301 investigation into Brazil on July 15, 2025. After a full year of hearings, public comments, and unsuccessful negotiating rounds, the conclusion was announced on July 15, 2026: Brazil's acts, policies, and practices were found to be unreasonable and to burden US commerce.
The USTR issued a notice of action announcing the imposition of a 25% tariff on all imports from Brazil, effective July 22, 2026, subject to certain product exemptions. The action follows a Section 301 investigation into Brazilian acts, policies, and practices related to digital trade, electronic payment services, preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation.
This action follows extensive efforts since April of 2025 to negotiate a solution to the unfair trading practices that harm American workers and companies. Despite multiple negotiating rounds and proposals by the United States, Brazil has continued its harmful practices and has not agreed to resolve these long-standing issues.
What Products Are Hit — and What Gets a Pass
The scope of the tariff is broad. The tariffs apply to thousands of Brazilian imports including sugar, agricultural machinery, apparel, electrical machinery, paper, and steel.
But the USTR carved out a significant exemption list. Exempted products include coffee, beef, oranges and orange juice, some oil and gas energy products, and aerospace parts and components. The exemption list was also expanded to include aluminum hydroxide, antiques, collectibles, art, organic honey, pig iron, unflavored instant coffee, used clothing, precious metal ash, and certain wood, seafood, and leather products.
The new policy includes exemptions for key consumer staples like coffee and beef, suggesting the White House is trying to minimize the inflationary impact on American shoppers even as it steps up pressure on Brazil.
One critical operational detail: the duty will not stack on top of existing Section 232 tariffs, nor apply to goods on the water before July 22 that are withdrawn from a warehouse for consumption before July 29. That in-transit window is narrow, but it matters for any shipment already at sea.
Also note that products subject to the tariffs and admitted into a US foreign trade zone must be admitted in "privileged foreign status," unless they are eligible for "domestic status." Importers using FTZ strategies for Brazilian goods need to review their zone admissions procedures immediately.
The Bigger Picture: A Global Tariff Rebuild
The Brazil action does not stand alone. It is explicitly the first shot in a broader campaign to rebuild the tariff structure that the Supreme Court dismantled.
This week's announcement marks the implementation phase of long-planned efforts to permanently replace the 2025 tariffs that were struck down by the US Supreme Court in February. That setback led to billions in refunds, including nearly $50 billion paid by the US government to businesses in June alone.
Trump has sought to reinstate his tariff power by launching Section 301 probes, which allow him to impose levies on countries found to have engaged in unfair trade practices, without additional congressional authorization.
The Brazil decision is the first under this new Section 301 strategy. The second, far larger action involves forced labor. On June 2, 2026, the USTR announced the results of investigations under Section 301 concerning 60 trading partners' alleged failure to impose and effectively enforce prohibitions on the importation of goods produced with forced labor. Announcing its findings that all 60 of the economies investigated had failed to adopt and effectively enforce such import prohibitions, USTR determined that this conduct is unreasonable and burdens US commerce, and proposed imposing tariffs ranging from 10% to 12.5% on imports from these countries.
The proposed tariff rate is 10% for most goods of 15 trading partners, and 12.5% for most goods of 45 trading partners. Those 60 economies represent 99% of all US imports. A separate forced-labor probe could also pile an additional layer of duties specifically onto Brazilian goods: a separate US probe into forced-labor enforcement could see an additional 12.5% duty on Brazilian goods on top of the 25%, with the decision due next week.
Why Brazil — Even Though the US Has a Trade Surplus
One of the most unusual aspects of this action is the trade balance. The US goods trade surplus with Brazil was $14.4 billion last year, up 112.8% compared to the year prior. Section 301 is most commonly invoked against deficit partners, making the Brazil case a notable departure.
The administration's stated rationale centers on specific unfair practices rather than the overall trade imbalance. The tariffs stem from a yearlong Section 301 investigation that concluded Brazil engaged in a range of unfair trade practices, including lax anti-corruption enforcement, illegal deforestation, and provisions in Brazil's instant payment system, Pix, that the US argues disadvantage American credit card companies.
The USTR said the levies resulted from a Section 301 investigation of Brazil's treatment of US tech companies, ethanol products, and "illegal deforestation" that "persists to the detriment of US industry," among other factors.
The geopolitical backdrop is also significant. The dispute has also spilled into Brazil's upcoming presidential election in October. Brazil has vowed countermeasures, and USTR Jamieson Greer has said the US remains open to further negotiations — but time is short.
How the Section 122 Clock Ties Everything Together
To understand the urgency, you need to understand one expiration date. After the Supreme Court struck down the IEEPA tariffs in February 2026, the administration deployed a temporary 10% global surcharge under Section 122 of the Trade Act of 1974 as a bridge. USTR likely intends to be ready to impose the new Section 301 forced-labor tariffs by the time the 10% global Section 122 tariff expires on July 24, 2026. Section 301 tariffs provide a legal basis for longer-term tariffs. Unlike Section 122, Section 301 tariffs are not subject to the same practical time or rate limitations.
For importers, this means the landscape could shift again within days. A follow-up move that could cover more than 80 countries is expected within weeks. The forced-labor investigation covering 60 economies — representing virtually all US import trade — is the centerpiece of that follow-up.
What Importers Should Do Right Now
The practical steps for any importer with Brazilian-origin goods or broader global sourcing are the same: audit your exposure, verify your classification, and confirm your shipment timelines.
First, identify which of your Brazilian-origin goods fall outside the exemption list. Work with your customs broker to confirm the HTS classifications involved — the exemptions in the USTR notice are organized by tariff number, not by product name, so product-name assumptions can be costly. Second, if any shipments are already on the water bound for the US, verify whether they can be entered before July 29 to avoid the additional duty on in-transit cargo. Third, for the broader forced-labor wave affecting up to 60 countries, begin mapping your supply chain exposure now by country of origin and product category, before the final tariff rates and effective dates are confirmed.
Businesses using foreign trade zones for Brazilian imports should review how goods are being admitted under the new privileged foreign status requirements. Importers whose goods may be subject to both the 25% Brazil-specific tariff and potential forced-labor duties should model the stacked tariff impact carefully — the numbers can compound quickly.
How ASR Can Help
Navigating a fast-moving tariff environment — especially one where effective dates, exemption lists, and stacking rules are all changing in real time — requires experienced freight coordination and close collaboration with licensed customs professionals. At ASR WorldWide Express, we work alongside trusted licensed customs broker partners to help our clients understand exactly what is entering, when, and under what duty treatment. Whether you are shipping from Brazil, restructuring sourcing away from newly affected origins, or simply trying to determine how your supply chain is exposed to the coming global Section 301 wave, our team is ready to help you plan.
Contact ASR WorldWide Express at +1 786 373 3003 or shipping@asrwe.com to discuss your shipments and get ahead of the next wave of tariff changes.
Important Disclaimer
This article is provided for informational purposes only and does not constitute legal, tax, or customs advice. Tariff rules, exemption lists, effective dates, and duty rates are subject to change and may be updated by USTR at any time. Importers should consult a licensed customs broker and qualified trade counsel to assess the specific impact on their shipments and supply chains.
