The Office of the United States Trade Representative (USTR) has initiated a formal investigation into the trade policies and practices of Brazil.
The inquiry focuses on whether a range of Brazilian actions, across digital trade, tariffs, enforcement standards, and market access, are discriminatory or place an undue burden on US commerce.
A hearing related to the investigation is scheduled for 3 September 2025, with the USTR inviting public comments and hearing requests by 18 August 2025. The USTR has also requested consultations with the Brazilian government in accordance with procedures outlined in the Trade Act.
The investigation is being carried out following a directive from the US President and the recommendation of the inter-agency Section 301 Committee. Under Section 302(b) of the Trade Act, the Trade Representative has the authority to self-initiate such proceedings in response to potentially unfair foreign trade practices.
Focus areas of concern
According to USTR, the investigation will examine several areas of Brazilian policy. These include alleged retaliation against US digital platforms, particularly social media firms, based on content moderation issues. The USTR has suggested such actions could restrict US firms' ability to operate freely within Brazil’s digital and electronic payments sectors.
In the area of trade tariffs, the US is raising concerns over Brazil’s practice of offering preferential rates to some trading partners, which may disadvantage US exporters. Officials argue this may amount to unfair treatment that distorts competitive conditions.
Other focal points include Brazil’s enforcement of anti-corruption measures and transparency commitments. USTR noted that weak enforcement efforts in these areas could fall short of global standards related to anti-bribery norms.
Brazil’s stance on intellectual property (IP) is also under scrutiny. USTR argues that Brazil may not provide adequate protection for IP rights, potentially harming sectors of the US economy tied to innovation and creative industries.
The ethanol trade has emerged as another contentious issue. While Brazil had previously allowed near duty-free access for US ethanol, that policy has reportedly shifted, with significantly higher tariffs now imposed on American ethanol exports.
Lastly, the US Government is investigating claims that Brazil is failing to enforce laws designed to curb illegal deforestation. USTR officials argue that this weak enforcement undermines the position of US producers of timber and agricultural products in global markets.
