Why Is US Threatening Brazil With 25% Tariffs — And What Is Section 301?

The Office of the United States Trade Representative (USTR) has proposed 25% tariffs on Brazilian goods under Section 301, citing that its practices were unfair on ⁠a range of issues from digital trade to illegal deforestation.

The USTR has also determined that t the South American nation had engaged in practices that “are unreasonable and burden or restrict U.S. commerce.”

"Brazil’s acts, policies, and practices related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption enforcement; intellectual property protection; ethanol market access; and illegal deforestation are unreasonable and burden or restrict US commerce," it said in a report dated June 1.

USTR representative Jamieson Greer noted that he launched this Section 301 investigation at President Donald Trump’s direction to address longstanding and pervasive US concerns with certain of Brazil’s trade policies and practices.

"However, we continue to have substantial differences in resolving the issues identified in this investigation. I look forward to continuing engagement with the Brazilian Government in advance of the July 15, 2026 statutory deadline for taking responsive action," Greer added.

The USTR will hold a hearing about the proposed action on July 6.

What Is Section 301

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 American 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 Trump, on July 15 last year, 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.

Trump administration hit Brazil with a steep 50% tariff in July last year in retaliation for the ongoing prosecution of the country’s former President Jair Bolsonaro.

However, those duties were struck down by the US Supreme Court in February, leaving Washington able to impose only a 10% global tariff on exports to the US.