On July 15, 2025, the Office of the U.S. Trade Representative (USTR) announced that it has initiated a Section 301 investigation into Brazil’s acts, policies and practices related to digital trade, preferential tariffs and anti-corruption enforcement, among others. Section 301 of the Trade Act of 1974 is designed to address unfair foreign practices affecting U.S. commerce. To remedy the unfair practice, Section 301 authorizes the USTR to impose tariffs or other import restrictions.

USTR's Section 301-Brazil investigation will focus on several trading practices, including:

• Digital trade and electronic payment services: USTR's announcement indicates that Brazil may be undermining the competitiveness of U.S. companies engaged in these sectors, for example, by retaliating against them for failing to censor political speech or restricting their ability to provide services in the country;
• Unfair, preferential tariffs: Evidence indicates that Brazil accords lower, preferential tariff rates to the exports of certain globally competitive trade partners, thereby disadvantaging U.S. exports;
• Anti-corruption enforcement: The notice refers to evidence of Brazil’s failure to enforce anti-corruption and transparency measures which raise concerns in relation to norms relating to fighting bribery and corruption;
• Intellectual property protection: The announcement further suggests that Brazil apparently denies adequate and effective protection and enforcement of intellectual property rights, harming American workers whose livelihoods are tied to America’s innovation- and creativity-driven sectors;
• Ethanol: The announcement also refers to Brazil having walked away from its willingness to provide virtually duty-free treatment for U.S. ethanol and instead now applies a substantially higher tariff on U.S. ethanol exports; and
• Illegal deforestation: Evidence referenced indicates that Brazil appears to be failing to effectively enforce laws and regulations designed to stop illegal deforestation, thereby undermining the competitiveness of U.S. producers of timber and agricultural products.

USTR plans to hold a public hearing on September 3, 2025, and is seeking public comments on any issue covered by the investigation. The comment period will start on July 17.  If parties wish to have their comments considered, or wish to appear at the hearing, such comments and requests should be submitted by August 18, 2025.

The announcement by USTR comes days after President Trump announced in a letter that a potential 50% tariff on “any and all Brazilian products sent into the United States” would be implemented beginning August 1, 2025.