New Tariffs on Brazil and Dozens of Economies Take Effect Under Section 301

A new 25% Section 301 tariff on goods imported from Brazil took effect on July 22, followed two days later by a separate forced-labor tariff action adding 10% to 12.5% duties on products from roughly 60 economies. The moves are the latest additions to a tariff regime that has expanded steadily since the start of the administration's second term.

According to tracking by the Tax Foundation, the cumulative effect of the tariffs implemented so far amounts to an average tax increase of roughly $900 per US household in 2026, even as the underlying goal of narrowing the US trade deficit has largely not materialized in the trade data. Separate modeling suggests the Section 232 and Section 301 tariffs combined could reduce long-run US GDP by about 0.4%.

The tariffs have also become entangled with broader trade diplomacy. Earlier this summer, President Trump said he was "not looking to renew" the US-Mexico-Canada Agreement as renewal talks got underway, adding uncertainty for manufacturers with supply chains that span all three countries.

Businesses that import affected goods have had to continually adjust sourcing and pricing strategies as tariff rates and covered product lists have shifted through the year, a level of unpredictability that trade groups say has made long-term planning difficult.