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Since 22 July 2026, goods of Brazilian origin are subject to an additional 25% duty on entry into the United States, unless they fall under one of the exemptions identified in Annex I of the USTR action. Since 24 July, a second Section 301 action, related to forced labour, applies an additional 10% to 12.5% depending on the country of origin.
If your company ships to the United States, the US Section 301 tariffs changed twice in a single week, and neither change shows up in your invoicing system until the duty bill arrives.
The volume at stake is significant. The United States remained the second largest destination for Brazilian exports in 2025, at US$ 37.72 billion, down 6.6% year on year, according to Secex/MDIC figures released in January 2026.
What follows maps both actions: how much each one charges, what sits outside them, how they stack and which data your commercial invoice has to carry so the cargo is not held at the border.
Section 301 of the Trade Act of 1974 gives the Office of the United States Trade Representative (USTR) authority to investigate and take action against acts, policies or practices of foreign governments that are considered unreasonable, discriminatory or that burden or restrict US commerce. Remedies under Section 301 can include additional tariffs, quotas or other trade restrictions.
Two important updates took effect in July 2026:
In the Brazilian case, USTR concluded its investigation and determined that certain Brazilian policies related to digital trade, tariffs, intellectual property protection, anti-corruption enforcement, ethanol market access and illegal deforestation unfairly burden US commerce. The 25% tariff was imposed as a trade enforcement measure intended to address those concerns and to encourage changes in Brazil's policies.
In the forced labour investigation, opened in March 2026, USTR concluded that 54 of the 60 economies had neither imposed nor effectively enforced the ban on importing goods made with forced labour, and that six economies (Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan) failed only on effective enforcement.
For exporters, one detail shared by both actions matters more than the difference between them: Section 301 tariffs are based on the country of origin, meaning where the goods were actually manufactured, not the place they were shipped from.
The tariff is an additional 25%, effective from 12:01 a.m. eastern time on 22 July 2026. Goods of Brazilian origin are subject to it unless they fall under one of the exemptions identified in Annex I of the USTR action.
It is additional. It does not replace the general duty rate (GDR) in the HTSUS or any other tariff applicable to the goods.
Action | Effective date | Additional rate | Applies to |
Section 301 Brazil | 22 July 2026 | 25% | Goods manufactured in Brazil, unless exempt under Annex I |
Section 301 forced labour (FLIP) | 24 July 2026 | 10% to 12.5% | Goods manufactured in one of the 60 economies investigated |
Section 301 China | July 2018 | 7.5% to 25% for most products, up to 100% for some | Goods manufactured in China, by classification |
Importers or final recipients should expect their products to carry the associated HTSUS reporting codes from 9903.05.01 to 9903.05.09 to reflect the Section 301 tariffs on Brazilian goods.
The Section 301 tariff on Brazilian goods excludes strategic commodities and products already subject to other US trade measures, as well as products that cannot be sourced in the United States.
The main exclusions include:
Certain goods in transit before 22 July 2026 may also qualify for temporary relief. Under guidance published by CBP on 21 July 2026, that in-transit provision reached only ocean cargo loaded before that date and entered for consumption by 29 July, and did not apply to air, truck or rail cargo.
The key takeaway in the regulatory material itself is direct: if the product is manufactured in Brazil and is not listed in Annex I of the Federal Register notice, it is subject to the additional 25% tariff.
The warning that accompanies the annexes is worth repeating: sector is not the test. Exclusion eligibility is determined by the applicable country of origin and by the specific HTSUS provisions identified in the USTR annexes. If a product is not specifically excluded, importers should assume the tariff applies.
They are the additional duties created after the USTR investigation into the prohibition on importing goods made with forced labour in 60 economies. They apply from 24 July 2026 to goods manufactured in one of the covered countries, provided they are not excluded under the final notice, and they are organised in four tiers.
Tariff treatment | Countries and economies |
Additional 10% Section 301 tariff | Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, United Kingdom |
10% maximum combined duty (MFN/GDR plus Section 301) | European Union and Taiwan |
12.5% maximum combined duty (MFN/GDR plus Section 301) | Japan, South Korea and Switzerland |
Additional 12.5% Section 301 tariff | Brazil, Algeria, Angola, Australia, Bahamas, Bahrain, Chile, China, Colombia, Costa Rica, Dominican Republic, Egypt, Guyana, Hong Kong, Iraq, Israel, Kazakhstan, Kuwait, Libya, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Peru, Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, Thailand, Türkiye, United Arab Emirates, Uruguay, Venezuela, Vietnam |
In the two capped tiers, the calculation is a difference, not a sum. If the most favoured nation (MFN) duty rate, equivalent to the HTSUS general duty rate, is equal to or higher than the cap, no additional Section 301 duty applies. The USTR examples show the mechanics:
In the flat tiers, including Brazil's, the percentage is added in full on top of what was already due. The new FLIP tariffs are applied and reported under HS reporting codes ranging from 9903.05.20 to 9903.06.21.
To determine whether a product is subject to FLIP tariffs, USTR sets out four steps:
If the country of origin is not one of the 60 covered, FLIP tariffs do not apply.
General exclusions cover informational materials, donations, accompanied baggage and products admitted under qualified exceptions set out in the implementation notice.
Goods already subject to Section 232 tariffs are generally exempt from FLIP tariffs, which includes steel, aluminium and copper products, automotive products and parts, semiconductors, pharmaceuticals and other goods covered by an applicable Section 232 tariff programme.
There are also HTSUS product-specific exclusions, concentrated in essential raw materials, industrial and manufacturing inputs, certain agricultural products, certain chemicals and intermediate goods, and products covered by reciprocal trade commitments. Economies that adopted or committed to implementing import bans on forced labour goods received additional exclusions, listed in the applicable annexes.
Yes, they can apply simultaneously. Goods from Brazil may be subject both to the Brazil-specific Section 301 tariff and to the forced labour Section 301 tariff, unless an exclusion applies. In practice, a Brazilian product with no exclusion can carry 25% plus 12.5% on top of the HTSUS general duty rate.
The stacking order in force runs like this:
Not all duties apply to all shipments. Applicability depends on product classification, country of origin, intended use and eligibility for exclusions or exemptions.
One practical consequence tends to go unnoticed: goods already captured by Section 232 are generally outside FLIP. The product that looked most heavily taxed can end up carrying less than the item next to it on the packing list.
The tariff is applied based on the country of origin of the product, not necessarily the country it is shipped from. Country of origin is generally determined under CBP rules of origin and substantial transformation. Goods that are merely transshipped through Brazil do not become goods of Brazilian origin.
That changes the routine for anyone consolidating cargo or running a distribution centre outside the country of production. Country of origin stops being a form field and becomes the data point that sets the rate.
Supply chains blending inputs from two or more countries deserve extra care. CBP publishes specific guidance on determining origin in composite scenarios, and the case-by-case analysis remains the importer's responsibility, supported by a customs broker or trade counsel.
To avoid delays, shippers from the rest of the world to the United States must provide a detailed description of the goods, the country of origin, the HTSUS classification to the extent possible, the manufacturer identification code (MID) and the final recipient's tax identification number on all formal entries.
In more detail, US Customs expects to find:
The line between held and cleared usually sits in the level of detail:
Generic description | Description that works |
Machine parts | Carbon steel gear for industrial reducer, used in bottling line maintenance, manufactured in Brazil |
Samples | Finished bovine leather samples, no commercial value, for supplier technical assessment |
Coffee products | Freeze-dried instant coffee powder, 200 g pack, origin Brazil |
If you are unsure how to reach the right code, it is worth reviewing the complete guide to HS codes and the commercial invoice guide before rewriting the descriptions in your export catalogue.
It depends on how the shipment is billed. Shippers using duty and tax paid (DTP) billing terms, where the shipper takes on duties and taxes, should expect a higher duty bill whenever the product is manufactured in Brazil or in one of the economies covered by FLIP.
Shipping DTU leaves the bill with the recipient in the United States, which protects your cash flow and creates a different problem: an importer surprised by an extra 37.5% tends to refuse the cargo or hand the conversation to your sales team.
The fix comes before the shipment. Agree who pays what, share an estimate of duties before you invoice, and record it on the order. For a broader view of how that cost moves through a price list, the Discover guide on who pays import tariffs is a useful starting point.
Recipients in the United States should be aware that all products manufactured in Brazil are potentially subject to new import duties of 25% under Section 301 plus 12.5% under FLIP, and that goods manufactured in one of the 60 economies named in the final notice may be subject to an additional 10% to 12.5%.
To avoid delays, the regulatory material advises recipients to:
All shipments, regardless of value or where they are sent from, are subject to all applicable duties based on the HTSUS.
These have their own treatment, and it depends on the commercial invoice showing how the value breaks down.
Under the Annex contained in the Federal Register notice, for goods entered under subheadings 9802.00.40, 9802.00.50 and 9802.00.60, the additional duty applies to the value of the repairs, alterations or processing performed. For goods entered under heading 9802.00.80, the additional duty applies to the value of the article assembled abroad, less the cost or value of the US products used in it.
In practice, the share of value attributable to Brazilian content or to repairs performed in Brazil is subject to the additional 25% duty, while non-Brazilian content is not, provided the commercial invoice clearly sets out that breakdown.
Products that fall under the exemptions for donations or informational materials are not subject to the additional tariff, but the exemption is not automatic. To make sure it is applied correctly, clearly identify the goods on the commercial invoice as donated goods or informational materials, ensure the appropriate exemption HS code is stated, and keep supporting documentation evidencing the purpose and nature of the goods.
Reviewing a catalogue takes time once suppliers, systems and customers are involved. Start with what holds shipments first:
DHL Express can facilitate customs clearance processes. However, importers remain responsible for determining classification, country of origin and exclusion eligibility, and should consult their customs advisors or international trade counsel where needed.
Goods of Brazilian origin are subject to the additional 25% tariff unless they fall under one of the exemptions identified in Annex I of the USTR action. The action notice published in the Federal Register contains the details of the order, including the HS codes that are out of scope.
Yes. Products from Brazil may be subject both to the Brazil-specific Section 301 tariff and to the forced labour (FLIP) Section 301 tariff, unless an exclusion applies.
No. The existing Section 301 tariffs for China and Brazil remain in force. For products that are not otherwise excluded, FLIP tariffs may apply in addition to those existing duties and to any other applicable duties.
No. The tariff is applied based on the country of origin, determined under CBP rules of origin and substantial transformation. Goods merely transshipped through a third country do not change origin.
No. All shipments, regardless of their value or where they are sent from, are subject to all applicable duties based on the Harmonized Tariff Schedule of the United States (HTSUS), as well as any other covered tariffs in force.
Classification, goods descriptions and a clear agreement on duties are back-office work that shows up in transit time. Companies that settle those three points before the shipment lose less time at the border and field fewer requests for information.
If your company exports to the United States, open a DHL Express Business Account and count on customs clearance support and electronic shipping solutions that transmit the required data from the moment the shipment is created.
Important: this article is informational and does not replace customs or tax advice. Rates, exclusions and deadlines can change by decision of USTR and CBP. Always confirm the rule in force on the date of your shipment with the official sources listed above.
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