USTR finalised a 25% Section 301 tariff on certain Brazilian goods on 15 July 2026, following a yearlong investigation into digital trade barriers, preferential tariffs, anti-corruption backsliding, weak IP protection, ethanol market restrictions and illegal deforestation.
United States Trade Representative (USTR) representative Jamieson Greer is taking final action, at President Trump’s direction, under Section 301 of the Trade Act of 1974 by imposing a 25% tariff on certain goods of Brazil, According to a release on 15 July 2026.
This follows a yearlong investigation by USTR that determined that certain Brazilian measures 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 and burden or restrict the commerce of American farmers, workers, innovators, and exporters.
This action comes after the Office of the USTR convened two public hearings, received over 360 public comments, and negotiated intensively with the Government of Brazil to seek resolution of US concerns.
Background
Section 301 of the Trade Act of 1974, as amended (Trade Act), is designed to address unfair foreign practices affecting US commerce. Section 301 may be used to respond to unjustifiable, unreasonable, or discriminatory foreign government practices that burden or restrict US commerce. A Section 301(b) investigation examines whether the acts, policies, or practices are unreasonable or discriminatory and burden or restrict US commerce.
At the specific direction of the President, on 15 July 2025, the USTR initiated an investigation under Section 302(b)(1)(a) of the Trade Act regarding the acts, policies, and practices of the Government of Brazil related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption enforcement; intellectual property protection; ethanol market access; and illegal deforestation.
On 15 July 2025, the Trade Representative requested consultations with the Government of Brazil pursuant to Section 303(a) of the Trade Act, which were held on 15 and 16 April 2026.
On 3 September 2025, USTR and the Section 301 Committee convened a public hearing regarding the investigation.
On 1 June 2026, the Trade Representative determined that under certain Brazil’s acts, policies, and practices related to these areas are unreasonable and burden or restrict US commerce, and are thus actionable under Section 301(b) of the Trade Act.
As a result of this determination, the Trade Representative proposed responsive action and invited the public to provide written comments by 1 July 2026 on the proposed action. USTR received, reviewed, and analysed over 360 written comments. On 6 and 7 July, USTR also held a public hearing regarding proposed responsive action in the investigation, at which 77 witnesses testified.
A copy of the Federal Register Notice is available here.
