A Separate 25% Section 301 Tariff on Brazilian Goods Took Effect July 22, 2026 — New HTSUS Heading 9903.05.01, Stacked on Top of Ordinary Duties, With an On-the-Water Window That Closed July 29
This is not the 60-economy forced-labor action that replaced Section 122 on July 24. It is a distinct, Brazil-only Section 301 case that USTR opened in July 2025 over Brazil's digital trade, electronic payment, tariff, anti-corruption, IP, ethanol and deforestation practices. USTR announced final action on July 15, 2026, the Notice of Action published in the Federal Register on July 20, and a 25% additional ad valorem duty on products of Brazil took effect at 12:01 a.m. ET on July 22, 2026 under new HTSUS heading 9903.05.01. The duty applies on top of ordinary customs duties, other Chapter 99 duties and any AD/CVD. Goods already subject to Section 232 measures are carved out, as are a long list of exempt tariff lines in the notice's annexes.
Real-World Impact
At the 25% rate, a unit with a $10 dutiable value from Brazil picks up $2.50 in additional duty — $2,500 on a 1,000-unit purchase order — on top of whatever ordinary duty and Chapter 99 charges the entry already carried. A $40 dutiable value unit picks up $10.00 per unit.
Key Points
- 25% additional ad valorem duty on products of Brazil, effective 12:01 a.m. ET on July 22, 2026 for goods entered for consumption or withdrawn from warehouse for consumption
- Implemented through new HTSUS heading 9903.05.01, with the exceptions carried in subheadings 9903.05.02 through 9903.05.09
- On-the-water exception: goods loaded onto a vessel before 12:01 a.m. ET July 22 and entered before 12:01 a.m. ET July 29, 2026 — that window has now closed
- The duty applies in addition to ordinary customs duties, other applicable Chapter 99 duties, and any applicable antidumping and countervailing duties, taxes and fees
- Goods already subject to Section 232 measures — steel, aluminum, copper, autos and semiconductors — are carved out of this action so they are not tariffed twice
- Other exempt categories named in the notice's annexes include civil aircraft parts, pharmaceutical articles, coffee, honey, leather, seafood, used clothing, informational materials, humanitarian donations and accompanied personal baggage
- This is a separate legal action from the Section 301 forced-labor tariffs that took effect July 24, 2026 — that action was a 60-economy case in which Brazil sits in the 12.5% tier. EY's analysis of the Brazil notice reads other Section 301 tariffs as applying cumulatively, so confirm with your broker which Chapter 99 lines your entries actually carry
- Procedural record: investigation initiated July 15, 2025; actionability determination June 1, 2026; public hearing July 6–7, 2026 with more than 360 written comments and 77 witnesses; final action announced July 15, 2026
What You Should Do Now
- 1Pull country of origin for every SKU and flag anything with Brazilian origin — this action is origin-based, not supplier-address-based
- 2Check each flagged HTSUS classification against Annexes I and II of the Notice of Action before assuming the 25% applies; the exempt list is long and includes several food and leather lines
- 3Ask your customs broker to confirm, entry by entry, which Chapter 99 lines are being filed — 9903.05.01 for the Brazil action, and whether any forced-labor Section 301 line is also being applied
- 4For Brazilian-origin goods that are already subject to Section 232 steel, aluminum or copper duties, verify the Section 232 carve-out is being claimed rather than paying both
- 5Re-run landed cost and only then decide on repricing — a 25-point duty swing on a thin-margin SKU may make the item unviable at its current price, which is a sourcing decision rather than a pricing one