The Section 301 tariff is being implemented for goods of Brazilian origin. That said, it is the structure that is important.
Not long after the Supreme Court ruled the IEEPA tariffs were unconstitutional on February 24th, 2026, there was lots of speculation about what was going to happen. For the last 147 days, Section 122 tariffs have been implemented globally at 10%. In March of 2026, the USTR launched an investigation into 60 countries under Section 301 for unfair trading with the US. Again, there was lots of speculation about what was going to happen when the Section 122 tariffs expire on July 24th, 2026. The only guideline for expanding the Section 301 is an investigation by the USTR.
The structure of the Section 301 tariff for Brazil is identical to the Section 122 tariff. However, it is 25% not 10%, and there are 12 pages of affected HTS codes. The exemptions apply to donations, Section 232 steel, aluminum and copper, and Section 232 for automotive, civil aircraft, etc.
At this point, we can expect the Section 301 to expand to other countries soon. The big question is what will happen with China and their existing 25% Section 301 tariff. Will it increase? Will the exemptions for donations, Section 232 steel, aluminum and copper, and Section 232 for automotive, civil aircraft, etc. apply to some or all of the tariffs?
