On July 15, 2025, the Office of the United States Trade Representative (USTR), at the direction of President Donald Trump, initiated an investigation of Brazil under Section 301 of the Trade Act of 1974. The investigation will seek to determine whether acts, policies, and practices of the government of Brazil related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption interference; intellectual property protection; ethanol market access; and illegal deforestation are unreasonable or discriminatory and burden or restrict U.S. commerce. Ambassador Jamieson Greer stated, “USTR has detailed Brazil’s unfair trade practices that restrict the ability of U.S. exporters to access its market for decades in the annual National Trade Estimate (NTE) Report. After consulting with other government agencies, cleared advisers, and Congress, I have determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action.” The USTR is requesting consultations with the government of Brazil, as required under the Trade Act of 1974. It is also accepting written comments from interested parties until August 18, 2025; and a public hearing will be held beginning on September 3, 2025.
As detailed in the Federal Register notice, the investigation will cover numerous trading practices, including:
- Digital trade and electronic payment services: Brazil may undermine the competitiveness of U.S. companies engaged in these sectors by, for example, censoring U.S. social media companies and undermining the competitiveness of U.S. companies engaged in digital trade and electronic payment services;
- Unfair, preferential tariffs: Brazil may offer lower, preferential tariff rates to certain large trading partners in specific sectors;
- Anti-corruption enforcement: Brazil’s efforts to enforce anti-corruption and transparency measures may have weakened in certain areas;
- Intellectual property protection: Brazil may deny adequate and effective protection and enforcement of intellectual property rights, including importation, distribution, sale, and use of counterfeit goods, modified gaming consoles, illicit streaming devices, and other circumvention devices;
- Ethanol market access: Brazil has allegedly “abandoned” the reciprocal and virtually duty-free treatment for U.S. ethanol and instead now applies a substantially higher tariff and use of a tariff-rate quota on U.S. ethanol exports; and
- Illegal deforestation: Brazil may lack effective enforcement of laws and regulations designed to stop illegal deforestation, and is allowing illegal timber harvesting and agricultural production on such lands.
Pursuant to Section 304 of the Trade Act, the USTR must determine whether these acts, policies, or practices are actionable under Section 301. If that determination is affirmative, the USTR must determine whether action is appropriate, and, if so, what action to take.
The USTR is seeking written comments from any interested party on any issued covered by the investigation. The Federal Register notice does identify particular issues for each of the previously listed trading practices where the USTR seeks to determine if Brazil’s acts, policies, or practices discriminate against or unfairly disadvantage U.S. companies. To be assured of consideration, the USTR must receive written comments by 11:59 p.m. EDT on August 18, 2025. USTR Docket No. USTR-2025-0043 has been established for this investigation and will be available here beginning on July 17, 2025.
The USTR will hold a public hearing on September 3, 2025, beginning at 10 a.m. EDT in the main hearing room of the U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. If necessary, the hearing may continue the next business day. A request to appear at the hearing, along with a summary of the testimony, must be submitted to the USTR by August 18, 2025. A docket for requests to appear at the hearing will be available here.