The U.S. administration has proposed a 25% tariff on certain imports from Brazil under Section 301 of the Trade Act, following an investigation by the Office of the United States Trade Representative (USTR). The agency concluded that several Brazilian policies and practices are considered unreasonable and place burdens or restrictions on U.S. commerce.
According to the USTR, the investigation examined a range of issues, including anti-corruption enforcement, intellectual property protections, access to Brazil’s ethanol market, and concerns related to illegal deforestation. The agency stated that these factors contributed to its determination that trade actions may be warranted under Section 301.
U.S. Trade Representative Jamieson Greer said the investigation was initiated at the direction of President Donald Trump. While U.S. and Brazilian officials have engaged in discussions regarding trade and economic relations, Greer noted that significant differences remain on several of the issues identified during the review.
As part of the process, the USTR has scheduled a public hearing on July 6 to gather input from stakeholders regarding the proposed tariff measures. The hearing is expected to provide businesses, industry groups and other interested parties an opportunity to comment on the potential impact of the action.
Section 301 provides the U.S. government with authority to address foreign trade practices deemed unreasonable, discriminatory or restrictive to U.S. commerce. Following an investigation, the law allows the president to implement measures such as tariffs in response to identified concerns.
The proposal follows previous trade actions involving Brazil. In July 2025, the United States imposed a 50% tariff on Brazilian goods. However, those duties were later overturned by the U.S. Supreme Court in February, leaving a 10% global tariff rate applicable to exports entering the U.S. market.
Separately, the White House announced adjustments to tariffs on certain steel, aluminum and copper imports. Under the revised measures, tariffs on selected agricultural equipment, including combines and harvesters, will be reduced from 25% to 15%. The administration also expanded the range of equipment eligible for the lower tariff rate.
In addition, capital equipment containing at least 85% U.S.-produced steel and aluminum by weight will qualify for a reduced 10% tariff rate. The change lowers the domestic content threshold from the previous 95% requirement and is intended to encourage greater use of U.S.-sourced materials within industrial supply chains.
Businesses across manufacturing, agriculture, metals and international trade sectors are expected to monitor both the proposed tariffs on Brazilian imports and the revised metals tariff framework as policymakers continue to adjust U.S. trade measures.
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