The Office of the United States Trade Representative initiated a Section 301 investigation of Brazil on July 15, 2025, at President Trump’s direction. The investigation, self-initiated under Section 302(b) of the Trade Act of 1974, covers six areas: digital trade and electronic payment services; preferential tariff treatment that disadvantages U.S. exports; anti-corruption enforcement; intellectual property protection; ethanol market access; and illegal deforestation. USTR has requested consultations with Brazil and published a Federal Register notice in connection with the action.
What it means
The investigation opens a formal process that could lead to responsive trade action against Brazil across a range of U.S. export interests. Ambassador Greer said USTR has documented Brazil’s tariff and non-tariff barriers in the annual National Trade Estimate Report for decades and that those barriers “merit a thorough investigation, and potentially, responsive action.” The six areas named cover U.S. technology companies, goods exporters facing preferential tariff disadvantages, ethanol producers, timber and agricultural producers, and intellectual property holders. On ethanol specifically, USTR stated that Brazil walked away from a prior willingness to provide virtually duty-free treatment for U.S. ethanol and now applies a substantially higher tariff. On digital trade, USTR stated that Brazil retaliates against U.S. companies for failing to censor political speech or restricts their ability to provide services in the country. On deforestation, USTR stated that Brazil’s failure to enforce its own laws undermines the competitiveness of U.S. timber and agricultural producers.
The inter-agency Section 301 Committee advised on the initiation, and USTR consulted with other government agencies, cleared advisers, and Congress before proceeding. A public hearing is scheduled for September 3, 2025, giving domestic industries and other interested parties a formal opportunity to submit evidence and testimony for the record.
Key facts
- Investigation initiated: July 15, 2025, by USTR under Section 302(b) of the Trade Act of 1974
- Initiated at President Trump’s direction, with inter-agency Section 301 Committee advice
- Six areas covered: digital trade and electronic payment services; preferential tariffs disadvantaging U.S. exports; anti-corruption enforcement; intellectual property protection; ethanol market access; illegal deforestation enforcement
- USTR has requested consultations with Brazil in connection with the investigation
- Federal Register notice published in connection with the investigation
- Public hearing scheduled: September 3, 2025
- Deadline for written comments and hearing appearance requests: August 18, 2025
Source: Office of the United States Trade Representative news release (ustr.gov)