US proposes 25% tariff on Brazilian imports following Section 301 findings on illegal deforestation

Published on June 8, 2026 Time: loading...

Two men in suits at a formal panel, microphones in front, with an American flag in the background and a blurred person facing them.

The United States has proposed a 25% tariff on imports from Brazil following findings that several Brazilian practices, including illegal deforestation and logging activities, may negatively affect American commerce. The proposal was announced by the Office of the United States Trade Representative (USTR) after a Section 301 investigation concluded that multiple policies and practices in Brazil are actionable under US trade law.

The proposed measure would apply to nearly all Brazilian products entering the US market. However, more than 1,600 tariff classifications would remain exempt under a separate exclusion list.

The investigation was launched in July 2025 by United States Trade Representative Jamieson Greer under the direction of President Donald Trump. According to USTR, discussions between Washington and Brasília have continued for months. Significant disagreements remain unresolved.

Greer stated that negotiators from both countries remain far apart on several key issues. As a result, the agency moved forward with its determination ahead of a statutory July 15 deadline.

Illegal deforestation was identified as one of six areas of concern. The determination concluded that products linked to unlawful land clearing can create unfair competitive advantages. Lower production costs may result from activities that do not comply with environmental regulations. This can place pressure on pricing for legally produced goods.

The timber sector received particular attention during the review. According to the USTR notice, illegally harvested wood may enter commercial supply chains through fraudulent documentation or other forms of misrepresentation. Such practices can distort market prices and undermine legitimate producers.

Officials cited estimates suggesting that illegal timber entering global markets can reduce the value of legally sourced wood products by between 7% and 16%. Concerns were also raised regarding Brazil’s Forest Code registration system. The notice indicated that official registration documents alone may not always provide sufficient evidence that timber harvested in the Amazon region was legally sourced.

US officials further noted that Brazilian lumber and furniture products may contain wood originating from unauthorized logging operations before reaching American buyers or other international markets.

The concerns extend beyond timber. Agricultural commodities cultivated on illegally cleared land were also highlighted in the determination. Those products may be exported directly or incorporated into downstream goods sold internationally.

The proposed action has generated mixed reactions among industry stakeholders. Several business groups supported the findings of the investigation. At the same time, concerns were expressed about the potential impact of broad trade restrictions.

The Information Technology Industry Council backed the USTR determination while warning against measures that could intensify trade tensions. Husani Durans de Jesus, the organization’s Americas director, stated that sweeping duties could disrupt the wider commercial relationship between the United States and Brazil.

Trade data from January through May 2026 underscore the importance of the Brazilian wood products sector in US commerce.

During the five-month period, Brazil exported approximately 1.22 million metric tons of wood pulp to the United States. Those shipments were valued at roughly US$507 million.

Plywood exports totaled 278,000 cubic meters with a reported value of US$81 million. Lumber shipments reached 306,000 cubic meters and were valued at US$80 million. Brazilian furniture exports to the United States included approximately 693,000 pieces worth US$41 million.

The latest proposal follows legal developments involving earlier trade actions. A 50% tariff imposed on Brazilian goods in 2025 was struck down by the US Supreme Court in February 2026. Since that ruling, a temporary 10% global tariff has remained in place while the Section 301 process continued.

The current proposal would replace the interim tariff structure if approved following the public consultation process.

The USTR opened the public comment period on June 1, 2026. Requests to participate in the hearing process must be submitted by June 22. Written comments are due by July 1.

A public hearing has been scheduled for July 6 at the US International Trade Commission in Washington, DC. Testimony from industry participants, businesses, and other stakeholders will be reviewed before any final decision is made.

The agency is expected to evaluate all submissions before determining whether responsive action should be implemented. If adopted, the proposed 25% tariff would apply to Brazilian imports that are not covered by the exemption list.

The decision could have significant implications for timber, furniture, agricultural, and manufacturing supply chains. It may also influence the future direction of US-Brazil trade relations as policymakers continue to address environmental compliance and market competition concerns through trade enforcement mechanisms.