The United States Trade Representative (USTR) has initiated a Section 301 investigation into Brazil, following a directive from President Donald Trump. The move, announced on July 15, places Brazil’s trade conduct under heightened scrutiny and could lead to further U.S. trade actions.
The probe focuses on Brazil’s policies and practices across several sectors, including:
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Digital trade
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Electronic payment services
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Discriminatory customs tariffs
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Anti-corruption enforcement
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Intellectual property protection
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Ethanol market access
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Illegal deforestation
According to the USTR, Brazil’s actions may be "unreasonable or discriminatory" and potentially place “a burden on U.S. commerce.”
“This investigation will determine whether Brazil’s trade policies violate international trade norms,” the USTR said in a statement, adding that the process will include formal consultations with the Brazilian government.
High Tariffs Coming August 1
In parallel with the investigation, President Trump has ordered a 50% additional tariff on all imports from Brazil, effective August 1, 2025, as previously reported by SteelOrbis.
This tariff action, which comes amid escalating trade tensions, is intended to pressure Brazil into reforming its trade and environmental practices. The USTR warned that if the investigation confirms violations, additional retaliatory measures may be imposed.
The development marks a significant escalation in U.S.-Brazil trade relations and signals a more aggressive enforcement posture by the Trump administration heading into late 2025.
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