USTR imposes an additional 25% Section 301 tariff on imports from Brazil

What the July 2026 Brazil Section 301 action does

On July 20, 2026 USTR published a Notice of Action at 91 FR 45516 (Vol. 91, No. 137, pages 45516–45615) determining, under Section 301(b) and Section 304(a) of the Trade Act of 1974, that certain of Brazil's acts, policies, and practices — spanning digital trade and electronic payment services, unfair preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation — are actionable, and that action is appropriate. At the direction of the President, USTR imposed an additional 25% ad valorem duty on nearly all products of Brazil through new HTS Chapter 99 heading 9903.05.01. The additional duty applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on July 22, 2026. Verified against the published Federal Register text on July 20, 2026: the notice published as filed — it went on public inspection at 8:45 a.m. on July 17, 2026 and the published rate, effective date, heading numbers, and annexes match the inspection copy, so nothing importers planned around over the intervening weekend changed. As of that same July 20, 2026 check, no CBP Cargo Systems Messaging Service (CSMS) message implementing heading 9903.05.01 had been located — the earlier Brazil CSMS guidance covers a different action — so entry filers should watch CBP's CSMS feed for the operational message before the July 22 effective date.

The in-transit exception is a seven-day window, not an open-ended one

Annex I sets the deadline that decides whether cargo already on the water pays the 25%: heading 9903.05.02 preserves pre-action treatment only for articles that (1) were loaded onto a vessel at the port of loading and in transit on their final mode of transit into the United States before 12:01 a.m. eastern time on July 22, 2026, AND (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern time on July 29, 2026. Both conditions must hold. That is a seven-day filing window from the effective moment — a cargo that sailed on July 15 and clears on July 30 loses the exception entirely and pays the full additional 25%, even though it was on the water before the action took effect. The practical consequence is that the in-transit relief is an entry-timing problem, not just a sailing-date problem: for goods already afloat on July 22, the entry must be filed and accepted inside that week.

How the duty stacks — and what it does not displace

The new duty is additional. Under U.S. note 50(a)(i), goods subject to heading 9903.05.01 remain subject to the general Chapter 1–97 rates, so a Brazil-origin good keeps its normal classification duty and adds the 25% Section 301 amount on top. Three stacking rules in that note are easy to miss. First, antidumping, countervailing, and other duties, taxes, fees, exactions, and charges continue to apply alongside the 25% — the Section 301 duty does not absorb an AD/CVD order. Second, eligibility for special tariff treatment under general note 3(c)(i), or for temporary duty exemptions or reductions under Chapter 99 subchapter II, does not shield a product from the additional duty. Third, Chapter 98 relief is largely preserved where CBP agrees entry under a Chapter 98 provision is appropriate — except that for goods entered under subheadings 9802.00.40, 9802.00.50, or 9802.00.60 the additional duty applies to the value of the repairs, alterations, or processing performed, and for goods entered under heading 9802.00.80 it applies to the value of the article assembled abroad less the cost or value of the U.S.-origin components.

Goods already caught by Section 232 are carved out

One of the largest exclusions is not in Annex II at all — it sits in heading 9903.05.07 and U.S. note 50(a)(vi). Articles of aluminum, steel, or copper and derivative aluminum or steel articles; passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, cargo vans) and light trucks; parts of those vehicles; medium- and heavy-duty vehicles and their parts; wood products; and semiconductor articles of Brazil are reported under 9903.05.07 and pay only the duty provided in the applicable subheading — no additional 25%. In other words, the Section 301 action deliberately does not double up on the goods already covered by the Section 232 programs. Annex I also amends note 50(a)(vi) to add patented pharmaceutical articles provided for in headings 9903.04.60–9903.04.66 to that carve-out list.

Which products are exempt — check Annex II by HTSUS provision

The action does not cover every Brazil-origin good. Annex II lists HTSUS provisions that are not covered by the action, subject to a 'Scope Limitation' column, and personal-use goods in accompanied baggage of arriving persons are excluded. USTR determined to exempt a defined set of products — including aluminum hydroxide; antiques, collectibles, and art; ash containing precious metals or precious-metal compounds; certain animal hides, furskins, and leather; certain seafood products; certain additional pharmaceuticals and pharmaceutical ingredients; certain wood products; iron and steel waste and scrap; organic honey; pig iron; unflavored instant coffee; used clothing; and articles of civil aircraft. USTR also declined some requested exemptions. Because the carve-outs are defined by HTSUS provision (not by plain-language product name), confirm your product's exact classification and any scope limitation in Annex II before assuming it is exempt.

Brazil Section 301 filing map — Chapter 99 headings 9903.05.01 through 9903.05.09

Annex I of the Notice of Action (91 FR 45516) inserts nine new Chapter 99 headings, not one. Only 9903.05.01 carries the +25%; the other eight are the routes out of it, each tied to a subdivision of new U.S. note 50. Article descriptions below are condensed from the Annex I table; the additional duty column reproduces the Rates of Duty 1-General entry. Match your entry to the controlling heading before filing, and confirm scope against the official notice.

Separately from the nine headings, U.S. note 50(a)(i) excludes products for personal use in the accompanied baggage of arriving persons. This is a distinct Section 301 investigation from the China technology-transfer actions (Lists 1–4A) that govern the HTS codes in this catalog; it does not change any China-origin Section 301 overlay. Annex II carve-outs are defined by HTSUS provision, not by product name — confirm your exact classification and any 'Scope Limitation' before assuming a heading applies.