Executive summary

The United States Trade Representative (USTR) has taken significant action under Section 301 of the Trade Act of 1974 involving Brazil and Vietnam, reflecting increased scrutiny of both tariff and non-tariff trade barriers in the two countries.

For Brazil, the USTR issued a determination at the conclusion of its investigation initiated 15 July 2025, stating that a wide range of acts, policies and practices are actionable under Section 301. The issues addressed include digital trade, preferential tariffs, anti-corruption enforcement, intellectual property (IP) protection, ethanol market access and illegal deforestation. The USTR has proposed imposing 25% tariffs on all goods from Brazil, subject to certain exemptions and invited public comments on the proposed action.

For Vietnam, the USTR initiated a Section 301 investigation into IP protection and enforcement following its identification as a priority foreign country. The investigation will evaluate whether Vietnam's practices are unreasonable or discriminatory and burden or restrict US commerce, with potential for future trade actions.

Background

The USTR's Section 301 actions are part of broader efforts to address foreign trade practices that may disadvantage US commerce, including those not always covered by traditional trade agreements.

The Brazil investigation was initiated on 15 July 2025 at the direction of the US President and included extensive public comments, consultations with the Government of Brazil and a public hearing. The Vietnam investigation was initiated pursuant to a statutory requirement following its designation as a priority foreign country under the Special 301 process.

Brazil determination and scope

The USTR determined that Brazil's acts, policies and practices in the following areas are actionable:

• Digital trade and electronic payment services
• Unfair, preferential tariffs
• Anti-corruption enforcement
• IP protection
• Ethanol market access
• Illegal deforestation

The USTR found these practices to be unreasonable or discriminatory and to burden or restrict US commerce.

Proposed action (Brazil)

The USTR has proposed imposing additional tariffs of 25% on all goods of Brazil and outlined, in the Annex to the determination, certain exemptions based on their Harmonized Tariff Schedule of the United States (HTSUS) classification with certain scope limitations. Proposed exemptions include:

• Certain raw materials and goods with limited alternative sourcing
• Products already subject to Section 232 measures
• Informational materials, donations and personal articles
• Products for which tariffs may cause disproportionate economic disruption or fail to address the underlying conduct

Vietnam investigation and scope

The Section 301 investigation into Vietnam focuses on its alleged failure to provide adequate and effective IP protection and enforcement, as well as fair and equitable market access for IP-reliant industries.

Key areas of concern include:

• Online piracy and weak criminal enforcement
• Widespread counterfeiting in physical and digital markets
• Ineffective border enforcement
• Lack of enforcement against unlicensed software use
• Gaps in legal protections for cable and satellite signal theft

The USTR has proposed that these practices may be actionable, subject to findings from the investigation.

What this means for businesses

These actions reflect the expanding use of Section 301 to address both traditional and nontraditional trade barriers, including those related to digital policies and environmental enforcement. For businesses, this development introduces a range of potential risks and strategic considerations. In the case of Brazil, proposed tariffs could materially increase import costs across a broad set of goods, which may in turn disrupt established supply chains. With respect to Vietnam, although tariffs have not yet been proposed, the ongoing investigation creates the possibility of future duties or other trade restrictions.

Request for public comments

Brazil: The USTR invites comments on the proposed tariff action, including scope, exclusions and economic impacts.

Vietnam: The USTR invites comments on the acts, policies and practices under investigation and their impact on US commerce.

Key dates

Brazil:

• 1 June 2026: Comment period opens
• 22 June 2026: Deadline for hearing requests
• 1 July 2026: Written comments due
• 6 July 2026: Public hearing

Vietnam:

• 29 May 2026: Investigation initiated
• 2 July 2026 (11:59 p.m. ET): Written comments due

Comment submission

Comments must be submitted via https://comments.ustr.gov/s/.

Brazil dockets: The docket number for comments is USTR-2026–0331; the docket number for requests to appear at the public hearing is USTR-2026–0397.

Vietnam docket: The docket number for comments is USTR-2026–0364.

Actions to consider

Actions for businesses to consider, depending on their specific situations, include:

• Assess exposure to imports from Brazil and Vietnam, including affected sectors and HTSUS classifications
• Model potential tariff impacts (including the proposed 25% duty on Brazilian goods) and evaluate mitigation strategies
• Prepare and submit written comments addressing commercial impacts and supply-chain considerations
• Determine whether to request participation in the Brazil hearing and prepare concise testimony
• Ensure compliance with submission requirements, including business confidential information protocols and documentation standards
• Monitor developments in both proceedings, including potential escalation to imposed measures following the investigation