USTR Finds Brazil Trade Practices Actionable Under Section 301
Trade Update • June 3, 2026
Key Points
- USTR determined that several Brazilian trade policies and practices are actionable under Section 301 of the Trade Act of 1974.
- The findings cover digital trade, electronic payment services, tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation.
- USTR has proposed responsive action and opened a public comment process.
- Requests to testify at the public hearing are due by June 22, 2026, while written comments are due by July 1, 2026.
- The statutory deadline for U.S. responsive action is July 15, 2026.
The Office of the U.S. Trade Representative (USTR) has concluded its Section 301 investigation into Brazil and determined that several Brazilian acts, policies, and practices are unreasonable or discriminatory and burden or restrict U.S. commerce. As a result, USTR has proposed responsive action and is seeking public comments before making a final decision. The findings follow a year-long investigation launched in July 2025 and come as U.S. and Brazilian officials continue discussions aimed at resolving outstanding trade concerns before the July 15, 2026 statutory deadline. A federal notice outlines USTR’s actionability determination and proposed actions.
Areas Found Actionable Under Section 301
Digital Trade and Electronic Payment Services
USTR found that Brazilian court actions have negatively affected U.S. social media companies by:
- Issuing secret content-removal orders
- Requiring the suspension of certain user accounts, including U.S. residents
- Restricting disclosure of court orders to affected users
- Imposing significant penalties for non-compliance
- Restricting access to assets, accounts, and payment systems
- Shutting down at least one platform
USTR also cited policies that allegedly favor Brazil’s domestic electronic payment providers over competing U.S. firms.
Preferential Tariff Treatment
According to USTR, Brazil provides lower tariff rates to hundreds of products from Mexico and India under partial-scope trade arrangements. The agency argues that these preferential tariffs affect sectors where Mexican and Indian producers compete globally.
Anti-Corruption Enforcement
The investigation concluded that Brazil has not taken sufficient enforcement action to address bribery and corruption concerns.
Intellectual Property Protection
USTR identified several concerns related to intellectual property enforcement, including:
- Insufficient action against counterfeit goods
- Delays in patent examinations, particularly for biopharmaceutical products
- Inconsistent anti-piracy enforcement efforts
Ethanol Market Access
The United States argues that Brazil ended what had been a balanced ethanol tariff arrangement in 2017 and has not provided reciprocal tariff treatment for U.S. ethanol exports since then.
Illegal Deforestation
USTR determined that although Brazil maintains a legal framework to combat illegal deforestation, enforcement gaps have allowed illegal deforestation activities to continue.
Next Steps
Public Participation Deadlines
- Requests to appear at the public hearing: June 22, 2026
- Written comments due: July 1, 2026
- Public hearing: July 6, 2026
Potential U.S. Response
USTR has proposed responsive action but has not yet finalized specific measures. The agency will review public comments and hearing testimony while continuing discussions with the Brazilian government before deciding on further action.
Background
USTR initiated the Section 301 investigation on July 15, 2025, at the direction of President Trump. During the investigation, the agency collected testimony from more than 30 witnesses and reviewed over 295 comments and rebuttal submissions. The findings provide the legal basis for potential trade actions under Section 301(b) of the Trade Act of 1974.
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