The American government has increased pressure on Brazil by concluding a trade investigation that could result in the application of a
The final report was released by the Office of the United States Trade Representative (USTR), the body responsible for the country’s trade policy, and classifies a series of Brazilian acts, policies and practices as “irrational” or capable of restricting North American trade.
The investigation was opened in July 2025 by order of US President Donald Trump, based on Section 301 of the Trade Act of 1974, an instrument already used in trade disputes against China.
Although negotiations between the governments of Washington and Brasília remain ongoing, the document shows that relevant differences remain on topics that go far beyond traditional trade.
Pix and court decisions come into focus
Among the main points highlighted by the Americans is the Brazilian instant payments system, Pix. According to the report, the Central Bank of Brazil would act simultaneously as a regulator and operator of the system, creating competitive advantages in relation to foreign private companies that offer digital payment services.
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The US also questions Brazilian court decisions involving digital platforms. The document states that judicial authorities issued confidential orders to remove political content and suspend profiles on social networks, including those of residents in the United States.
Although the report does not name ministers, the criticism concerns decisions taken by the Federal Supreme Court in recent years involving digital platforms and content moderation.
Ethanol returns to the center of the dispute
Another point of friction is the ethanol market. The Americans allege that Brazil abandoned, in 2017, a tariff reciprocity policy that favored bilateral fuel trade.
In the USTR’s assessment, American ethanol exports currently face less favorable conditions than those previously granted by the Brazilian government. The topic is considered strategic for corn-producing states in the USA, the basis of American ethanol production.
Lava Jato and corruption appear in the document
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The report also dedicates a chapter to combating corruption. The United States claims that Brazil does not adopt sufficient measures to combat bribery and corporate corruption.
As an example, the document cites STF decisions that annulled Operation Lava Jato processes and mentions renegotiations of leniency agreements classified by the Americans as not very transparent.
Brazil’s drop in Transparency International’s Corruption Perception Index is also used as an argument to support criticism.
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Intellectual property and piracy
The American government still points out flaws in the protection of intellectual property. According to the report, Brazil does not adequately combat product counterfeiting and maintains excessively slow processes for granting patents.
The document states that biopharmaceutical patent applications can take up to 109 months to be analyzed by the National Institute of Industrial Property.
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Deforestation and trade agreements
The investigation also criticizes the fight against illegal deforestation. Although it recognizes the existence of robust environmental legislation, the USTR states that Brazil has historically failed to effectively apply the standards.
Furthermore, the American government questions preferential tariff agreements signed by Brazil with Mexico and India, alleging that American companies would be at a competitive disadvantage in certain industrial sectors.
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Despite the proposal for a general tariff of 25%, the document provides for an extensive list of exceptions. Among the products that would be left out of the measure are certain meats, fruits, coffee, tea, fertilizers, medicines, chemicals, strategic minerals and aircraft produced by Embraer, in addition to aeronautical parts. The complete list of exemptions occupies 73 pages of the report released by the American government.
What happens now
Before the final adoption of sanctions, the United States will open a phase of public consultations.
The schedule provides:
Until June 22nd: requests to participate in the public hearing;
Until July 1st: sending written manifestations;
July 6: public hearing held;
July 15: deadline for defining the measures.
The conclusion of the investigation represents a setback for the government of President Luiz Inácio Lula da Silva, which had been betting on direct negotiations with the White House to avoid new trade barriers.
If the proposal is confirmed, the additional tariff of 25% will replace the current temporary additional tariff of 10% applied by the USA on Brazilian products, significantly increasing the pressure on national exporters in sectors that depend on the American market.
