Brazil Tariffs Drop to 10 Percent After Court Ruling, But Section 301 Investigations Threaten New Duties in 2026
25 March 2026

Brazil Tariffs Drop to 10 Percent After Court Ruling, But Section 301 Investigations Threaten New Duties in 2026

Brazil Tariff News and Tracker

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Welcome to Brazil Tariff News and Tracker, your essential update on U.S. trade policies impacting Brazil. Today, major developments are shaking up tariffs under the Trump administration.

The Trump 2.0 Tariff Tracker from Trade Compliance Resource Hub reports that Brazil's so-called "Free Speech" tariffs, imposed at 40% and effective August 6, 2025, were declared invalid by a court ruling on February 20, 2026. This follows a U.S. Supreme Court decision delivering cost relief, with Brazil's rates plummeting from 50% to a universal 10% under Section 122, now implemented and effective February 24, 2026, set to end July 24, 2026. Wood Mackenzie notes Brazil as a major winner alongside Switzerland, though Section 232 steel and aluminum tariffs remain unchanged, and energy products plus USMCA-compliant goods stay exempt.

Lingering threats persist. The same tracker highlights a Section 301 investigation into Brazil announced July 17, 2025, by the USTR, probing digital trade, unfair tariffs, anti-corruption, IP protection, ethanol access, and illegal deforestation—a public hearing was held September 3, 2025. Section 301 forced labor tariffs are threatened as of March 12, 2026, with rates TBD, alongside excess capacity probes from March 11.

Adding to the mix, the Federal Register details a preliminary affirmative countervailing duty determination on high-purity dissolving pulp from Brazil, confirming subsidies to producers and exporters. Meanwhile, Latin Trade discusses rethinking U.S.-Latin American integration in 2026, where tariffs matter less than regulatory compliance for market access.

These shifts create volatility for Brazilian exporters—relief now, but uncertainty looms with potential escalations and expirations mid-year. Businesses should monitor USTR updates closely.

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