Brazil: 25% Section 301 Tariff Effective Yesterday

USTR concluded its 12-month Section 301 investigation on July 15 and announced a 25% tariff on most Brazilian imports (HTSUS 9903.05.01) effective July 22, 2026. Covered categories span digital trade, electronic payment services, IP protection, ethanol market access, anti-corruption enforcement, and illegal deforestation. Carve-outs include Section 232 goods (steel, aluminum, copper, autos), civil aircraft and engines, pharmaceuticals, and a defined set of supply-constrained goods (aluminum hydroxide, organic honey, pig iron, unflavored instant coffee, hides/leather, seafood, selected wood products, iron/steel scrap, antiques/art, used clothing). In-transit exemption: goods loaded before 12:01 AM ET July 22 AND entered before 12:01 AM ET July 29. For trade counsel advising clients with Brazilian supply chains, the carve-out analysis and in-transit documentation are the immediate compliance priorities.