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USTR announces 25% tariffs on imports from Brazil

The USTR finalizes tariff action following a Section 301 investigation into Brazil's trade, intellectual property, and environmental policies.

july 16, 2026

The Office of the United States Trade Representative (USTR) on July 15, 2026, issued a notice of action announcing the imposition of a 25% tariff on all imports from Brazil, effective July 22, 2026, subject to certain product exemptions.

Background

The action follows a Section 301 investigation initiated by the USTR on July 15, 2025, to examine Brazilian acts, policies, and practices related to digital trade, electronic payment services, preferential tariffs, anti-corruption enforcement, intellectual property (IP) protection, ethanol market access, and illegal deforestation. On June 1, 2026, the USTR determined that certain Brazilian practices are unreasonable or discriminatory and burden or restrict U.S. commerce. Following a public comment period and hearings, the president issued a memorandum on July 15, 2026, directing the USTR to impose the tariffs while granting specific exemptions.

Imposition of tariffs and exemptions

The additional 25% duty is applicable to products of Brazil entered for consumption, or withdrawn from warehouse for consumption, on or after July 22, 2026. Products that are subject to the tariffs and admitted into a U.S. foreign trade zone (FTZ) must be admitted in "privileged foreign status," unless they are eligible for "domestic status."

While the tariffs apply broadly, the USTR finalized a list of exempted products. In response to public comments, the final list of exemptions was modified from the initial proposal of June 4, 2026:

  • High-purity dissolving pulp was removed from the proposed exemption list and is now subject to the tariffs.
  • Exemptions for certain chemicals and chemical products are now strictly limited to their pharmaceutical applications.
  • The exemption list was expanded to include aluminum hydroxide, antiques, collectibles, art, organic honey, pig iron, unflavored instant coffee, used clothing, precious metal ash, and certain wood, seafood, and leather products.
  • Additionally, effective July 31, 2026, the exemption will extend to certain patented pharmaceutical articles.

Read a related USTR release (July 15, 2026).

For more information, contact a professional with KPMG Trade & Customs services:

 

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@kpmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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