Overview
- The Office of the U.S. Trade Representative has proposed a 25% tariff on Brazilian goods under Section 301 after finding practices that it says unreasonably burden U.S. commerce.
- The USTR named four specific grievance areas driving the probe: Brazil’s anti-corruption enforcement, protection of intellectual property, access for U.S. ethanol in Brazilian markets, and illegal deforestation.
- USTR Jamieson Greer said the investigation was launched at President Donald Trump’s direction and followed several high-level meetings between the two leaders where differences remained unresolved.
- The proposal follows the U.S. Supreme Court’s February decision that struck down the administration’s earlier 50% duties on Brazil and restricts Washington’s other tariff options under existing law.
- A public hearing on July 6 will allow stakeholders and foreign representatives to comment before a final decision, a step that could prompt diplomatic pushback from Brazil, industry disruption for exporters and possible legal challenges.