New Section 301 Investigation Into Brazil's Trading Practices

On July 15, 2025, the Office of the U.S. Trade Representative (USTR) announced that it has initiated a Section 301 investigation into Brazil's acts, policies and practices related to digital trade, preferential tariffs and anti-corruption enforcement, among others. Section 301 of the Trade Act of 1974 is designed to address unfair foreign practices affecting U.S. commerce. To remedy the unfair practice, Section 301 authorizes the USTR to impose tariffs or other import restrictions.

USTR's Section 301-Brazil investigation will focus on several trading practices, including:

• Digital trade and electronic payment services: USTR's announcement indicates that Brazil may be undermining the competitiveness of U.S. companies engaged in these sectors, for example, by retaliating against them for failing to censor political speech or restricting their ability to provide services in the country;