On July 27, 2026, Brazil filed a formal request for consultations with the United States at the World Trade Organization under the Dispute Settlement Understanding, and the request (WT/DS646/1) was circulated to WTO members on July 30 and became public on August 3.
The dispute targets two Section 301 measures adopted by the Office of the US Trade Representative under the Trade Act of 1974:
- an additional 25% ad valorem duty on Brazilian products, in force since July 22, resulting from an investigation into Brazil’s practices concerning digital trade and electronic payment services (including Pix), preferential tariffs granted to Mexico and India, anti-corruption enforcement, intellectual-property protection, ethanol market access, and illegal deforestation; and
- an additional 12.5% ad valorem duty, in force since July 24, resulting from a separate Section 301 investigation covering 60 economies on the enforcement of bans on imports produced with forced labor.
Stacked, the two measures reach 37.5% for products caught by both actions, and, according to Brazilian government figures, affect roughly 23.1% of Brazil’s exports to the United States, with the fully stacked rate hitting approximately 16.5% of the export basket in sectors such as machinery, timber, fats and oils, footwear, furniture, and clothing.
Brazil argues that the measures are unilateral and discriminatory and breach US obligations under GATT 1994 (including Articles I and II) and Article 23 of the Dispute Settlement Understanding, which prohibits WTO members from seeking redress for alleged violations outside the WTO dispute-settlement system.
The parties now have up to 60 days to attempt a negotiated solution; if consultations fail, Brazil may request the establishment of a panel.
In parallel, Brazil has signalled that it will invoke countermeasures under its Reciprocity Law.
Brazilian exporters, US importers of Brazilian goods, and their advisers should map exposure by tariff heading and plan for a prolonged dispute period during which the surcharges remain in place.
Source: Government of Brazil, Ministry of Foreign Affairs; Reuters; Datamar News