US initiates investigation against Brazil based on Section 301

In brief

On July 15, 2025, the Office of the United States Trade Representative (USTR) announced the opening of a formal investigation[1] , based on Section 301 of the Trade Act of 1974, into unfair trade practices by Brazil. [2]

In more detail

The investigation aims to examine allegations concerning Brazil’s commercial practices which, according to U.S. authorities, may place U.S. trade at a disadvantage. The scope of the analysis includes the following areas:

• Digital commerce and electronic payment services: Concerns have been raised about possible measures that would affect the performance of US companies in these sectors, such as restrictions on the provision of services or requirements related to the moderation of political content.

• Preferential tariffs: There are allegations that Brazil would apply reduced tariffs to certain trading partners, which could negatively impact the competitiveness of US exports.

• Application of anti-corruption measures: The investigation will examine the effectiveness of Brazil’s policies to combat corruption and promote transparency, given concerns about compliance with international standards.

• Intellectual property protection: According to the allegations, Brazil failed to ensure adequate protection and enforcement of intellectual property rights, which could affect US economic sectors based on innovation.

• Ethanol trade: The US authorities claim that there has been a change in Brazilian tariff policy, with the adoption of higher tariffs on US ethanol, in contrast to previous commitments of reduced tariff treatment.

• Illegal deforestation: The investigation will also consider allegations that Brazil is not effectively enforcing its environmental laws, especially regarding combating illegal deforestation, which could affect the competitiveness of US producers of timber and agricultural products.

According to US Trade Representative Jamieson Greer, Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action[3] . There will be a public consultation until August 18, 2025, in which interested parties can express their views in writing and request to participate in the public hearing on the subject, scheduled for September 3, 2025.

[1] Available at: https://ustr.gov/about/policy-offices/press-office/press-releases/2025/july/ustr-announces-initiation-section-301-investigation-brazils-unfair-trading-practices. Accessed on 16/07/2025.

[2] The decision comes after statements by President Donald Trump, who indicated his intention to impose tariffs of 50% on all imports from Brazil as of August 1st.

[3] Section 301 allows the US government to apply trade sanctions, such as additional tariffs, if it is proven that another country’s practices are unfair, discriminatory or harmful to US trade.