The Office of the United States Trade Representative launched an investigation Monday into Brazil's trade practices, potentially setting the stage for tariffs or other trade actions against South America's largest economy.
The probe, initiated under Section 301 of the Trade Act of 1974, will examine whether Brazil's policies on digital trade, tariffs, corruption enforcement, intellectual property protection, ethanol market access and illegal deforestation unfairly burden U.S. commerce.
"At President Trump's direction, I am launching a Section 301 investigation into Brazil's attacks on American social media companies as well as other unfair trading practices that harm American companies, workers, farmers, and technology innovators," U.S. Trade Representative Ambassador Jamieson Greer said in a statement.
The investigation will specifically examine whether Brazil is undermining U.S. companies by retaliating against social media platforms that refuse to censor political speech, and whether the country unfairly applies lower tariff rates to American competitors.
Officials will also review Brazil's enforcement of anti-corruption measures, intellectual property protections, and environmental regulations regarding illegal deforestation.
Of particular interest to U.S. agricultural interests is Brazil's treatment of American ethanol exports. The USTR noted that Brazil has abandoned previous commitments to provide nearly duty-free treatment for U.S. ethanol and now applies "substantially higher" tariffs.
The U.S. Grains Council welcomed the investigation, especially regarding ethanol tariffs.
"The Council is encouraged by the news of the investigation into Brazil that has – for years – placed unfair tariffs on American ethanol imports," said USGC President and CEO Ryan LeGrand. "Finally, we may see U.S. ethanol, its farmers and producers get a fair shake when it comes to access in Brazil."
As part of the process, the USTR will seek consultations with the Brazilian government and hold a public hearing on September 3, 2025. Interested parties can submit written comments and requests to testify by August 18.
Under Section 301, if the investigation determines that Brazil's practices are "unreasonable or discriminatory," the U.S. could implement retaliatory measures including tariffs on Brazilian imports.
The investigation comes amid broader trade tensions with Brazil, which the USTR has cited for years in its annual National Trade Estimate Report as maintaining barriers to U.S. exports.
Brazil is a major trading partner for the United States, with bilateral trade in goods and services totaling more than $100 billion annually.
