[Federal Register Volume 91, Number 137 (Monday, July 20, 2026)]
[Presidential Documents]
[Pages 45619-45635]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-14654]



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Vol. 91

Monday,

No. 137

July 20, 2026

Part V





The President





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Memorandum of July 15, 2026--Action by the United States in the 
Investigation Under Section 301 of the Trade Act of 1974 of Brazil's 
Acts, Policies, and Practices Related to Digital Trade and Electronic 
Payment Services; Unfair, Preferential Tariffs; Anti-Corruption 
Enforcement; Intellectual Property Protection; Ethanol Market Access; 
and Illegal Deforestation


                        Presidential Documents 



Federal Register / Vol. 91 , No. 137 / Monday, July 20, 2026 / 
Presidential Documents

___________________________________________________________________

Title 3--
The President

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                Memorandum of July 15, 2026

                
Action by the United States in the Investigation 
                Under Section 301 of the Trade Act of 1974 of Brazil's 
                Acts, Policies, and Practices Related to Digital Trade 
                and Electronic Payment Services; Unfair, Preferential 
                Tariffs; Anti-Corruption Enforcement; Intellectual 
                Property Protection; Ethanol Market Access; and Illegal 
                Deforestation

                Memorandum for the United States Trade Representative

                At my specific direction, on July 15, 2025, the United 
                States Trade Representative (Trade Representative) 
                initiated an investigation under section 301 of the 
                Trade Act of 1974, as amended (19 U.S.C. 2411) (section 
                301), into Brazil's acts, policies, and practices 
                related to digital trade and electronic payment 
                services; unfair, preferential tariffs; anti-corruption 
                enforcement; intellectual property protection; ethanol 
                market access; and illegal deforestation.

                On June 1, 2026, the Trade Representative determined 
                that certain of Brazil's acts, policies, and practices 
                in these issue areas are unreasonable or discriminatory 
                and burden or restrict United States commerce and thus 
                are actionable under section 301(b)(1) (19 U.S.C. 
                2411(b)(1)). The Trade Representative has further 
                advised me that he has continued to consult with the 
                Government of Brazil to obtain the elimination of these 
                acts, policies, and practices, but those consultations 
                have not satisfactorily resolved United States 
                concerns.

                As a result of his determination, the Trade 
                Representative proposed to determine that action is 
                appropriate, including applying tariffs of 25 percent 
                on all goods of Brazil, with exemptions for certain 
                goods. The Office of the United States Trade 
                Representative (USTR) invited comments by interested 
                persons on this proposed action and convened a public 
                hearing on July 6 and 7, 2026. USTR received over 360 
                written comments, and 77 witnesses testified at the 
                hearing.

                The Trade Representative has informed me of the 
                substance of significant comments on the proposed 
                action and advised me that after considering the 
                comments and testimony received, the products 
                identified in the Annex to this memorandum warrant 
                exemption from tariffs imposed in connection with this 
                action, as they are (a) raw materials that if subject 
                to these tariffs could lead to the unavailability of 
                domestic supply; (b) products that could cause economy-
                wide disruptions if subject to these tariffs; (c) 
                products that cannot be grown or produced in sufficient 
                quantities or at reasonable prices in the United States 
                or obtained from other sources; or (d) articles for 
                which these tariffs may not contribute substantially to 
                the elimination of the acts, policies, and practices of 
                Brazil found to be actionable in the investigation 
                described above.

                After considering and taking account of this 
                information and advice; the information, findings, and 
                determinations in USTR's Notice of Determination (2026-
                1158; 91 FR 33854); the need to obtain the elimination 
                of the acts, policies, and practices of Brazil found to 
                be actionable; and other pertinent information, it is 
                hereby directed as follows:

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                Section 1. Tariffs and Exemptions. (a) The Trade 
                Representative shall impose a tariff of 25 percent on 
                all goods of Brazil, with exemptions for certain goods 
                as discussed in subsection (b) of this section.

                    (b) The Trade Representative shall exempt from the 
                tariff directed in subsection (a) of this section the 
                products identified in the Annex to this memorandum. I 
                determine that each of these products constitutes (a) 
                raw materials that if subject to these tariffs could 
                lead to the unavailability of domestic supply; (b) 
                products that could cause economy-wide disruptions if 
                subject to these tariffs; (c) products that cannot be 
                grown or produced in sufficient quantities or at 
                reasonable prices in the United States or obtained from 
                other sources; or (d) articles for which these tariffs 
                may not materially contribute to the elimination of the 
                acts, policies, and practices of Brazil found to be 
                actionable in the investigation described above. After 
                weighing the relevant considerations, including 
                potential economic harm and efficacy of tariffs, I 
                determine that the products identified in the Annex to 
                this memorandum shall be exempted from the tariff 
                directed in subsection (a) of this section, and the 
                Trade Representative shall direct that the Harmonized 
                Tariff Schedule of the United States be modified as 
                provided in the Annex to this memorandum.
                    (c) In my judgment, the tariff of 25 percent on all 
                goods of Brazil, with the exemptions for certain goods 
                as discussed in subsection (b) of this section, is 
                appropriate and feasible to obtain the elimination of 
                the acts, policies, and practices of Brazil found to be 
                actionable under section 301. I determine that 
                alternatives to the action directed in this memorandum, 
                such as a lower tariff rate, negotiation without the 
                imposition of tariffs, and action under other statutory 
                authority without action under section 301, would be 
                less effective and less preferable than the action 
                directed in this memorandum. In my judgment, the 
                specific direction in this memorandum is consistent 
                with the purposes of section 301.

                Sec. 2. General Provisions. (a) Nothing in this 
                memorandum shall be construed to impair or otherwise 
                affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                     (b) This memorandum shall be implemented 
                consistent with applicable law and subject to the 
                availability of appropriations.
                     (c) This memorandum is not intended to, and does 
                not, create any right or benefit, substantive or 
                procedural, enforceable at law or in equity by any 
                party against the United States, its departments, 
                agencies, or entities, its officers, employees, or 
                agents, or any other person.

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                Sec. 3. Publication. The Trade Representative is 
                authorized and directed to publish this memorandum in 
                the Federal Register.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, July 15, 2026

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[FR Doc. 2026-14654
Filed 7-17-26; 11:15 am]
Billing code 7020-02-C