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Brazil Formally Rebuts U.S. Section 301 Probe, Citing WTO Rules

Brasília casts Section 301 as outside WTO rules.

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A soldier of the presidential guard stands at the Planalto Palace as the Brazilian flag flutters in the background, in Brasilia, Brazil July 31, 2025. REUTERS/Adriano Machado/File Photo

Overview

  • In a 91-page filing, Brazil rejected U.S. allegations and said it does not recognize Washington’s authority to run a unilateral Section 301 investigation.
  • The U.S. probe, launched in July, targets Brazil’s digital trade and tariff policies to assess whether they burden or restrict U.S. commerce.
  • Brazil disputed U.S. claims involving its ethanol market and the Pix digital payment system, arguing its policies are neither unreasonable nor discriminatory.
  • Brasília has requested WTO consultations over the U.S. tariff measures and urged constructive dialogue to resolve the dispute.
  • Tensions remain elevated following the Trump administration’s 50% tariffs on Brazilian goods and U.S. sanctions on a Brazilian Supreme Court justice, and USTR had no immediate comment on Brazil’s submission.