USA concludes investigation and uses Section 301 against Brazil; understand the mechanism that can pave the way for 25% tariffs

USA proposes 25% tariff on Brazilian goods to punish 'unreasonable' practices
The Office of the United States Trade Representative (USTR) concluded, this Monday (1st), an investigation into Brazilian government practices and classified part of the country's policies as "unreasonable" and "restrictive to American trade".
Based on the so-called Section 301 of the 1974 Trade Act, the agency proposed the application of tariffs on 25% on Brazilian products and opened the case for public consultation before a final decision.
The measure marks the most advanced stage in a process that could result in direct trade sanctions and reinforces the use of one of the broadest instruments of US trade policy.
Next, g1 explains what Section 301 is, a mechanism used by the US government as the basis for the investigation that could lead to the application of tariffs on Brazilian products.
What is Section 301
A Section 301 of the Trade Act of 1974 is a legal mechanism that allows the United States government to investigate whether another country adopts practices considered "unjustifiable," "discriminatory," or that impose barriers to U.S. trade.
If these practices are confirmed, the USTR may recommend trade retaliation, including tariffs on imports, restrictions, or other measures of economic pressure.
In practice, it is a foreign trade policy tool that gives the U.S. government the power to unilaterally respond after formal investigation. and public consultation.
How the process works
The use of Section 301 follows defined steps:
First, the USTR opens an investigation, generally motivated by complaints from companies, economic sectors or political determination by the Executive. Next, a phase of technical analysis and dialogue with the investigated country takes place.
Once this stage is complete, the agency publishes a report with its conclusions and opens a public consultation, in which companies, governments and entities can present arguments.
Only after this does the American government decide whether or not to apply retaliatory measures - and what they will be.
What is at stake in the Brazilian case
In the case of Brazil, the USTR report points out alleged distortions in areas such as digital commerce, intellectual property, tax policies and regulatory practices. Based on these conclusions, the agency proposed 25% tariffs on Brazilian imports, although some products may be left out of the measure, according to the document.
The investigation was opened in July 2025 and gained momentum following a request from President Donald Trump, within a broader strategy of tightening United States trade policy.
Difference to other tariff tools
Section 301 is not the only legal basis used by the US to impose tariffs. It differs from other mechanisms, such as Section 232, which is based on national security arguments, and is typically used in sectors such as steel and aluminum.
Section 301 focuses on commercial practices considered unfair and works as an instrument of retaliation after formal investigation.

Source: G1