US Section 301 tariffs on Brazil proposed over trade practices
The Office of the US Trade Representative (USTR) has determined that Brazil engages in actionable trade practices under Section 301 of the Trade Act of 1974, spanning digital trade, electronic payments, preferential tariffs, IP protection, ethanol market access, and illegal deforestation. USTR is proposing tariff action on Brazilian articles and certain exemptions, with a public comment period. This marks a potential escalation in US-Brazil trade relations and will directly affect landed cost and duties on imports from Brazil.
Photo: Roy Serafin / PexelsUSTR finds Brazil's trade practices actionable under Section 301
On June 4, 2026, the US Trade Representative published a Notice of Determination under Section 301 of the Trade Act of 1974, finding that certain Brazilian acts, policies, and practices are actionable and unjustifiable. The investigation spans six trade irritants: digital trade and electronic payment services, unfair preferential tariffs, anti-corruption enforcement gaps, intellectual property protection deficiencies, ethanol market access restrictions, and illegal deforestation linked to trade.
Who is affected
Any shipper, exporter, or importer moving goods from Brazil to the United States faces immediate uncertainty. The USTR determination signals imminent tariff action on "articles of Brazil"—the specific HS chapters and rate increases have not yet been disclosed in this notice but will follow in implementing orders. Brazilian exporters in all sectors should prepare for higher US duties; US importers sourcing from Brazil will see landed costs rise across the board unless exemptions apply.
What USTR is proposing
The notice invites public comment on proposed tariffs and exemptions. The trade negotiation history suggests USTR may target high-value sectors (agriculture, minerals, machinery, chemicals) to maximize leverage. The mention of ethanol market access indicates agricultural products (HS Chapter 27—mineral fuels—and Chapter 19—prepared cereals) may be in scope. Digital trade disputes could implicate services outside tariff lines, but goods duties will dominate the action.
"The Trade Representative is proposing action, including tariffs on articles of Brazil and certain exemptions, and invites comments from the public."
This is a standard Section 301 escalation: determination published, comment period opens, tariffs follow unless negotiated settlement occurs.
Timeline and next steps
Public comments will be accepted for 30–60 days (typical for Section 301 notices). Final tariffs will be announced post-comment window and may take effect within weeks. Shippers with Brazilian sourcing should monitor USTR press releases and the Federal Register closely.
What this means for shippers
All importers from Brazil must immediately audit their supply chains and landed-cost models. Higher tariffs will apply within weeks to months; exemptions may be narrow and time-limited. File comments if you have specific product dependencies on Brazil; prepare alternative sourcing or price increases for customers. Use Section 301 tariff tracking tools now to map which HS codes and Brazilian exporters will be hit hardest and by how much.
