Section 301: U.S. launches investigation – Learn how to participate and assess risks

On July 15, 2025, the Office of the United States Trade Representative (USTR) formally initiated an investigation under Section 301 of the Trade Act of 1974 to determine whether certain acts, policies, and practices of Brazil are discriminatory or restrictive to U.S. companies and workers.

The investigation covers a broad range of topics, including digital trade, electronic payment services, preferential tariffs, anti-corruption measures, intellectual property protection, ethanol market access, and illegal deforestation. This investigation may lead to unilateral trade measures by the U.S., such as imposing additional import tariffs, quantitative restrictions, and non-tariff barriers on Brazilian products. Consequently, the outcome of the investigation could significantly impact the competitiveness of Brazilian exporters in the U.S. market, potentially rendering exports unfeasible, reducing revenues, causing market losses and trade diversion, and jeopardizing jobs, global value chains, and bilateral investments.

Today, July 17, the USTR opened the public comment period regarding the investigation. Interested parties must submit comments and requests to participate in the public hearing (along with a summary of the testimony) by August 18, 2025. The public hearing will be held on September 3, 2025, at the U.S. International Trade Commission in Washington, D.C.

Participation in the comment process and hearing is not limited to the Brazilian government. Companies, associations, and other interested parties – whether Brazilian or foreign (including subsidiaries, parent companies, clients, among others) – may submit information, arguments, and technical evidence on the issues under review.

Given that multiple areas are under investigation, well-founded technical contributions –grounded in both Brazilian and U.S. expertise on the relevant sectors, trade data, economic impacts, regulatory practices, and international commitments – are essential for preparing effective comments.

Considering the significance of this matter for Brazil, any sectoral or individual participation must be coordinated with the Brazilian government, which is leading the negotiations with the U.S. government. Engagement and collaboration from U.S. counterparts potentially affected by the measures may also carry weight regarding the outcome.

Demarest’s International Trade and Customs team is monitoring the matter closely and remains available to provide further clarification.