The Office of the US Trade Representative (USTR) proposed on June 1, 2026, a new 25% tariff on a range of goods imported from Brazil, opening a formal Section 301 process that targets footwear, apparel and travel-related products.
The proposal
USTR released a Federal Register notice setting out proposed action against Brazilian imports under Section 301 of the Trade Act of 1974, the same statute that underpins many recent US trade disputes. The notice invited stakeholders to comment and to request to appear at a public hearing, with requests due by June 22. The 25% rate would apply to consumer-facing categories that account for a meaningful share of Brazilian exports to the US market.
- Footwear and related products.
- Apparel and textile goods.
- Travel-related products such as bags and luggage.
How Section 301 works
Section 301 allows the United States to investigate and respond to foreign acts, policies or practices it considers unfair or burdensome to US commerce. After a comment and hearing period, USTR can recommend tariffs or other measures, giving affected parties a window to argue for or against the proposed list. The mechanism is procedural by design, building an evidentiary record before any duties are finalized.
Stakeholders in focus
US importers and retailers that source consumer goods from Brazil face potential cost increases if the duty is finalized. Brazilian exporters, particularly in light-manufacturing sectors, would see their price competitiveness in the US market eroded. Some buyers may shift orders to alternative suppliers in other countries, while others may absorb part of the cost or renegotiate contracts.
Process and timeline
The hearing schedule and comment deadlines determine how quickly any tariff could take effect. Companies typically submit written comments, present at hearings, and prepare contingency sourcing plans while the review is pending. The final scope and rate can shift during this process, as USTR weighs industry input and the potential for retaliation.
Bilateral relations
The proposed Brazil tariff lands amid a broader period of active US trade policy in mid-2026, including expanded metals duties and forced-labor determinations affecting dozens of countries. How Brasilia responds, including any move toward consultations or countermeasures, will shape the trajectory of US-Brazil commercial ties. Brazil is a significant agricultural and industrial exporter, and a sustained dispute could ripple across multiple sectors.
Sector ripple effects
Footwear and apparel are labor-intensive industries where pricing is highly sensitive, so a 25% duty could meaningfully shift competitiveness. Retailers that built sourcing relationships in Brazil over many years would need to weigh the cost of switching against the disruption of relocating production. For Brazilian manufacturers, losing ground in the US market could prompt a search for alternative export destinations or a push for government support.
For now, the proposal remains at the consultation stage, and the final scope and rate could change before any measure is imposed. Importers are reviewing supplier contracts and tariff classifications to gauge their exposure should the 25% duty proceed after the hearing process concludes. The outcome will hinge in part on the evidence and arguments presented during the comment and hearing period now under way.