US Slaps 25% Brazil Tariff as Section 301 Duties Replace Expiring Section 122 Levies
Updated
Updated · Financial Times · Jul 20
US Slaps 25% Brazil Tariff as Section 301 Duties Replace Expiring Section 122 Levies
3 articles · Updated · Financial Times · Jul 20
Summary
Wednesday brings a new U.S. tariff on some Brazilian imports, with cargo loaded before 12:01 a.m. ET July 22 and entered by July 29 exempt; missing that filing window triggers a 25% duty.
That move bridges a legal and administrative handoff as Section 122 tariffs expire this week and Washington races to install broader Section 301 duties after courts struck down earlier tariff authorities.
USTR has already issued findings in 60 Section 301 investigations tied to forced labor and proposed additional duties of 10% to 12.5%, with final action possible at any time and no 150-day limit.
The shifting rules are already distorting trade flows: container rates have surged as importers rush shipments, and the Port of Los Angeles handled record cargo volumes in June.
The latest switch underscores a wider Trump trade strategy of repeatedly changing legal bases for tariffs, creating uncertainty for shippers even if the economic hit is not seen as catastrophic.
With the U.S. levying unilateral tariffs on 60 nations, what does this mean for the future of global trade law?
As new tariffs target nearly all U.S. trade, how will global supply chains and economic alliances be permanently altered?
Can tariffs on 60 nations truly combat forced labor, or will they primarily raise costs for American consumers?
U.S. Proposes New Section 301 Tariffs on 60 Economies: Legal, Economic, and Geopolitical Impacts After Supreme Court Ruling
Overview
The United States Trade Representative has proposed new Section 301 tariffs as part of the Trump administration’s broader strategy to rebuild trade measures after previous tariffs were struck down by the Supreme Court. These tariffs aim to address unfair foreign trade practices, with a special focus on combating forced labor in global supply chains. Section 301 of the Trade Act of 1974 gives the President authority to impose these levies, which are not limited by the same time or rate restrictions as earlier Section 122 tariffs. This shift allows for more sustained and targeted trade policy interventions.