Section 301 Brazil 2026: USTR Proposes 25 Percent on Brazilian Imports with 1,600 HTSUS Exemptions
On June 1 2026, USTR issued a Section 301 determination against Brazil and proposed a 25 percent additional tariff. The Annex carves out more than 1,600 HTSUS subheadings including beef, coffee, rare earths, aircraft parts. Here is the country tier, exemption categories, hearing schedule, and worked landed-cost examples for the lanes most exposed.
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Open calculatorSection 301 Brazil 2026: USTR Proposes 25 Percent on Brazilian Imports with 1,600 HTSUS Exemptions
On June 1 2026, the United States Trade Representative issued a Section 301 determination against Brazil and proposed a 25 percent additional tariff on Brazilian-origin imports, with more than 1,600 HTSUS subheadings carved out via an Annex. The proposal is one of two Section 301 actions USTR issued in the first week of June (the other being the June 2 60-economy forced labor action) and signals an escalation of Trump 2.0 era trade enforcement.
For US importers sourcing footwear, apparel, travel goods, textiles, wood and paper, or chapter 84 to 85 machinery from Brazil, the August-onward landed cost picture changes meaningfully. This guide covers the determination basis, the exemption Annex categories, the hearing timeline, the duty stack interaction with Section 122 and the parallel forced-labor Section 301, and worked examples for the most exposed lanes.
The determination
USTR's June 1 2026 determination identified six categories of Brazilian acts, policies, and practices found to be unreasonable and burdensome on US commerce:
- Digital trade and electronic payment services restrictions
- Unfair, preferential tariffs (Brazilian preferences for Mercosur partners over US imports)
- Anti-corruption enforcement gaps
- Intellectual property protection inadequacy
- Ethanol market access restrictions
- Illegal deforestation enforcement gaps
Under Section 301 of the Trade Act of 1974 (19 USC 2411), USTR's determination authorizes corrective tariff action. The proposed action is a 25 percent additional ad valorem tariff on Brazilian-origin imports.
The Annex exemption list
More than 1,600 HTSUS subheadings are carved out of the proposed 25 percent action. The categories include:
- Beef and beef products (HTSUS 0201, 0202, 0210)
- Coffee (HTSUS 0901)
- Orange juice (HTSUS 2009.11, 2009.12, 2009.19)
- Rare earth metals and certain critical minerals
- Energy products (crude petroleum, refined fuels)
- Aircraft and aircraft parts (over 430 lines from chapters 84, 85, 88)
- Agricultural products (broad coverage)
- Chemicals and fertilizers
The Annex protects roughly 90 percent of US trade with Brazil by value (driven by the energy, aircraft, and agricultural carve-outs). The 25 percent would apply only to the remaining roughly 10 percent, but that 10 percent disproportionately captures finished consumer goods (footwear, apparel, travel goods) and small industrial machinery.
Timeline
| Date | Event |
|---|---|
| June 1 2026 | USTR determination + proposed action published in Federal Register |
| June 22 2026 | Hearing appearance request deadline (passed) |
| July 1 2026 | Public comment period closes |
| July 6 2026 | USTR public hearing |
| July 15 2026 (estimated) | USTR finalizes determination |
| Late July to August 2026 | Earliest effective date if action proceeds |
Note that the July 6 Brazil hearing falls one day before the July 7 forced-labor 60-economy hearing (which also covers Brazil at the 12.5 percent tier). The same week clears two major Section 301 actions.
Stacking analysis
For a Brazilian-origin shipment cleared in August 2026, the worst-case duty stack would include:
| Layer | Rate | Notes |
|---|---|---|
| MFN | Variable per HS line | Footwear is typically 8 to 37.5%, apparel 5 to 32% |
| Section 122 reciprocal | 0% if cleared after July 24 2026 | Sunsets by statute |
| Section 301 Brazil (new, if effective) | 25% | Only if NOT in Annex exemption list |
| Section 301 forced labor (new, if effective) | 12.5% | Brazil is in 12.5% tier per separate June 2 action |
| Section 232 | 0% on non-steel-aluminum-copper | Most Brazilian lines unaffected |
| MPF | 0.3464% capped at 614.35 | Standard |
| HMF | 0.125% ocean | Standard |
For footwear or apparel from Brazil that lands outside the Annex, the August 2026 effective rate could exceed 50 percent ad valorem before MFN duty. That is a significant cost shift relative to the May 2026 baseline.
Worked example: Brazilian footwear August 2026
A 100,000 USD CIF shipment of Brazilian leather footwear (HTSUS 6403.99, men's leather shoes other than sports). MFN duty on 6403.99 is typically 8.5 percent.
| Layer | Rate | Base | Amount (USD) |
|---|---|---|---|
| MFN | 8.5% | 100,000 | 8,500 |
| Section 301 Brazil (if effective) | 25% | 100,000 | 25,000 |
| Section 301 forced labor (if effective) | 12.5% | 100,000 | 12,500 |
| Section 122 (sunset July 24) | 0% | 100,000 | 0 |
| MPF capped | 614.35 | ||
| HMF ocean | 125 | ||
| Total | 46,739.35 |
Effective rate: 46.7 percent of customs value. For a 100k shipment that is 38.2k more than the pre-June 1 stack of approximately 8.5k.
Worked example: Brazilian aircraft engine parts (Annex exempt)
A 200,000 USD CIF shipment of Brazilian-made aircraft engine parts (HTSUS 8409.10, parts for spark ignition aircraft engines). Aircraft parts are on the Annex exemption list.
| Layer | Rate | Base | Amount (USD) |
|---|---|---|---|
| MFN | 0% (Free under Civil Aircraft Agreement) | 200,000 | 0 |
| Section 301 Brazil | EXEMPT (Annex) | 200,000 | 0 |
| Section 301 forced labor (if effective) | EXEMPT (aviation parts on Annex A) | 200,000 | 0 |
| Section 122 (through July 24) | 15% (NOT USMCA exempt) | 200,000 | 30,000 |
| MPF capped | 614.35 | ||
| HMF ocean | 250 | ||
| Total through July 24 | 30,864.35 | ||
| Total after July 24 sunset | 864.35 |
For aircraft parts importers, the Section 301 Brazil action is irrelevant due to the Annex carve-out. The Section 122 sunset is the only meaningful cost lever in this category.
Worked example: Brazilian coffee (Annex exempt)
A 500,000 USD CIF shipment of green coffee beans (HTSUS 0901.11, not decaffeinated). Coffee is Annex exempt under both the Brazil action and the forced-labor action.
| Layer | Rate | Base | Amount (USD) |
|---|---|---|---|
| MFN | 0% (coffee is Free) | 500,000 | 0 |
| Section 301 Brazil | EXEMPT | 0 | |
| Section 301 forced labor | EXEMPT (agricultural) | 0 | |
| Section 122 | 15% through July 24 | 500,000 | 75,000 |
| MPF capped | 614.35 | ||
| HMF ocean | 625 | ||
| Total through July 24 | 76,239.35 | ||
| Total after July 24 sunset | 1,239.35 |
Same story for coffee: Section 301 Brazil does not bite, but the Section 122 sunset is a 75k USD swing on a 500k coffee shipment.
What importers should do now
Map your Brazilian-origin HS lines against the Annex exemption list. If your line is in the Annex, the Section 301 Brazil proposal does not apply. If outside the Annex, model the August scenario at 25 percent additional duty.
Identify which products also fall under the forced labor Section 301 (June 2 action). Brazil is on the 12.5 percent tier of that separate proposal. If your product is outside both Annexes, the combined exposure is 25 percent (Brazil) plus 12.5 percent (forced labor) plus MFN duty.
File comments by July 1. The USTR docket on the Brazil action closes July 1 2026. Written comments carry weight even without hearing testimony.
Re-evaluate Brazil sourcing for affected categories. For footwear, apparel, and travel goods, sourcing alternatives (Vietnam, Indonesia, Mexico under USMCA) start to look meaningfully cheaper at 46+ percent effective duty on Brazilian origin.
Track final USTR action mid-July. USTR expects to finalize the Brazil Section 301 determination by July 15 2026. The effective date typically follows the final notice by 15 to 30 days.
Citations
- USTR June 1 2026 Brazil Section 301 determination press release: https://ustr.gov/about/policy-offices/press-office/press-releases/2026/june/ustr-section-301-determination-brazils-unreasonable-acts-policies-and-practices
- USTR Federal Register notice June 1 2026 (Brazil Actionability and Proposed Action): https://ustr.gov/sites/default/files/files/Press/Releases/2026/Brazil%20Section%20301%20Actionability%20and%20Proposed%20Action%20FRN%206-1-26%20Final.pdf
- Thompson Hine SmarTrade analysis: https://www.thompsonhinesmartrade.com/2026/06/ustr-in-brazil-section-301-investigation-determination-proposes-25-tariffs/
- Crane Worldwide Logistics tariff advisory: https://www.craneww.com/knowledge-center/trade-advisory-notices/u.s-section-301-determination-on-brazil-tariff-risk-and-compliance-implications/
- Barnes Richardson Colburn analysis: https://www.barnesrichardson.com
- Green Worldwide Shipping operational summary: https://www.greenworldwide.com/ustr-proposes-25-section-301-tariff-on-brazilian-goods-1200-hts-exemptions-and-430-aircraft-carve-outs/
- Congressional Research Service: https://www.congress.gov/crs-product/IN12613
Run a Brazilian-origin stack scenario
The LandedFees calculator handles the existing duty layers (MFN, Section 232, Section 122, MPF, HMF) for Brazilian-origin shipments today. The proposed Section 301 Brazil 25 percent and the parallel forced-labor 12.5 percent layers will be wired in once USTR publishes the final notices in late July 2026.
Frequently asked questions
Why is USTR proposing 25 percent on Brazilian imports?
The June 1 2026 USTR determination found that certain of Brazil's acts, policies, and practices are unreasonable and burden or restrict US commerce. The cited areas are digital trade and electronic payment services, unfair preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation. The 25 percent additional tariff is the proposed response under Section 301 of the Trade Act of 1974.
What is on the Annex exemption list?
More than 1,600 HTSUS subheadings carve out. The categories include beef, coffee, rare earth metals, energy products, aircraft and aircraft parts (over 430 aircraft-related lines), agricultural products, chemicals, and fertilizers. The full list runs in the June 1 2026 Federal Register notice.
When does the 25 percent take effect?
Not yet effective as of June 26 2026. Public comment closes July 1 2026. USTR holds a public hearing July 6 2026. USTR expects to finalize the determination and any corresponding measures by July 15 2026. Earliest effective date is mid to late July 2026.
Does this stack with Section 122 or Section 232?
Section 232 covered goods (steel, aluminum, copper, derivatives) are generally on the exemption Annex so do not stack. Section 122 reciprocal applies to most Brazilian-origin goods through July 24 2026 at 15 percent, then sunsets by statute. The new 25 percent forced-labor Section 301 separately proposed on June 2 2026 also covers Brazil at 12.5 percent. If both Section 301 actions go effective, Brazilian apparel could face 25 percent (Brazil-specific) plus 12.5 percent (forced labor) plus MFN duty plus MPF plus HMF in the August-September window.
What categories of Brazilian goods are MOST exposed?
Footwear (HTS 64), apparel (HTS 61, 62), travel goods (HTS 42), wood and paper products (HTS 44, 48), textiles (HTS 50-60), and most chapter 84-85 machinery NOT covered by aircraft carve-outs. Iron and steel (chapter 72) is on the Section 232 carve-out side. Coffee (chapter 9) and orange juice (chapter 20) are protected via the Annex.
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