US Probes Brazil's Wild Mix: Tech Tariffs, Ethanol, and Jungle Deforestation Drama
Published Date: 7/18/2025
Notice
Summary
The U.S. is launching a big investigation into Brazil’s rules on digital trade, tariffs, anti-corruption, and more starting July 15, 2025. This could affect businesses and trade between the two countries, especially in tech, ethanol, and environmental areas. The government wants your thoughts and will hold a public hearing soon, so get ready to speak up!
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
U.S. launches Section 301 probe
On July 15, 2025 the U.S. Trade Representative opened a Section 301 investigation into Brazil's acts, policies, and practices related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption enforcement; intellectual property protection; ethanol market access; and illegal deforestation. The notice says this could affect businesses and trade between the two countries, especially in tech, ethanol, and environmental areas.
Public hearing and comment request
The Section 301 Committee is holding a public hearing and seeking public comments in connection with the investigation of Brazil. Businesses, trade groups, and other stakeholders can prepare to submit comments or participate in the hearing to present their views.
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Key Dates
Department and Agencies
Related Federal Register Documents
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The United States Trade Representative (Trade Representative) has determined under Section 301(b) and Section 304(a) of the Trade Act of 1974, as amended (Trade Act), that in each of 60 investigations, certain of the acts, policies, and practices of the economy at issue are actionable and that action by the United States is appropriate. In accordance with the specific direction of the President, the Trade Representative is taking actions in each of these investigations by imposing tariffs on all products of the investigated economy, with certain exemptions as provided in Annexes I and II to this notice (Notice). Consistent with the specific direction of the President, for an economy that imposes a forced labor import prohibition, has committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade (ART), or has imposed a partial regime with the effect of preventing the importation of certain forced labor goods, the Trade Representative has determined 10 percent is the appropriate rate of Section 301 duties, with specific economies subject to a 10 percent rate net of a product's most-favored-nation (MFN) duty. For every other economy, and in accordance with the specific direction of the President, the Trade Representative has determined 12.5 percent is the appropriate rate of Section 301 duty, with specific economies subject to a 12.5 percent rate net of a product's MFN duty. The Trade Representative has also determined, consistent with the specific direction of the President, to establish, when feasible, tariff-rate quotas (TRQs) for Bangladesh, Cambodia, Indonesia, and Malaysia, based on each economy's importation of U.S. inputs, to encourage the importation by each of these economies of U.S. cotton and textile goods, in order to reduce reliance on inputs from other sources that are more likely to contain forced labor inputs.
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