The Office of the US Trade Representative (USTR). The investigation will be carried out under Section 301 of the US Trade Law, which had already supported another investigation against Brazil last year.
Both investigations deal with accusations of anti-competitive trade practices and could result in tariff measures against Brazil. In this second process, another 59 countries are targets of investigation by the USTR. Among them, Argentina, the European Union, China, the United Kingdom and Japan.
The US alleges that these nations allegedly use forced labor in the production of items sold abroad or that they import these products.
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The initiative was announced on Thursday night and comes after the Donald Trump administration was defeated in the Supreme Court, which considered illegal the global tariffs that the US had been applying to its trading partners since April 2025. The court’s decision was on February 20.
Check below for more details about what Section 301 is and what could happen to Brazil.
What is Section 301?
Section 301 is a part of the US Trade Act of 1974 that allows the Office of the United States Trade Representative (USTR) to conduct investigations into practices that allegedly harm American international trade and determine whether or not there are irregularities. The intention is to punish actions considered discriminatory against American companies with sanctions on target countries.
If the body determines that Brazil actually has anti-competitive practices in commercial relations between the two countries, it may determine the adoption of compensatory and retaliatory measures.
How is the investigation carried out?
The use of Section 301 must follow a process that goes from the beginning of dialogue with the commercial partner, through an investigation, mediation and, finally, measures to correct any irregularities in the agreement. The complete process lasts at least 12 months and can be extended.
What risks does Brazil run?
According to experts, if the USTR deems that there are irregularities, the United States will have approval to expand its retaliation against Brazil, with the imposition of extra tariffs, restrictions on imports, suspension of commercial benefits, among other measures.
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Can Brazil appeal to the WTO?
Yes, it is possible for Brazil and other investigated countries to initiate contentious litigation at the World Trade Organization (WTO). However, it is a slow process, which can last between three and four years.
Which countries have already been investigated under Section 301?
Although the use of Section 301 is not recurring, it is also not unprecedented.
Brazil itself has already been investigated by the Office of the US Trade Representative, based on Section 301, in 1985 and 1987, with complaints related to a restriction on the access of American technology companies to the Brazilian market and accusations of failure to grant biopharmaceutical patent applications.
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Other countries and blocs such as China, Japan, India, and even the European Union have already been investigated in similar processes.
In addition to the investigation opened on Thursday night and the one that has been underway since last year, the US is also investigating Nicaragua under Section 301, indicating alleged irregular practices related to labor rights, human rights and the rule of law.
