Brazilian government and businesses launched a coordinated response to the US Trade Representative (USTR) Section 301 investigation, with nearly 80 entities filing formal defenses against allegations of unfair trade practices, O Globo reported.

The cabinet and businesses have urged Washington to reconsider the probe that could impose additional restrictions beyond current 50% tariffs.

Brazil’s Foreign Minister Mauro Vieira formally requested USTR withdraw the investigation, warning that "unilateral measures under Section 301 could undermine the multilateral trading system and have adverse consequences” for bilateral relations.

Major Brazilian entities including the National Confederation of Industry (CNI), sugarcane association Unica, aircraft manufacturer Embraer, and firearms producer Taurus submitted detailed rebuttals to accusations spanning digital commerce policies, environmental enforcement, anti-corruption measures, and market access restrictions.

US companies also participated, with Elon Musk's X platform highlighting Brazil as "one of the largest global user bases and a strategically significant market" while expressing concerns about regulatory predictability and law enforcement proportionality.

Aircraft manufacturer Embraer argued that imposing restrictions would be "directly contrary" to US interests, noting the company's "critical role" in US aviation with 12,500 US jobs created – 2,500 direct employees plus 10,000 supply chain positions.

"Embraer aircraft safely transport approximately 100mn passengers across the US each year, representing about 10% of all US passenger air traffic," the company said, emphasising that more than 2,000 Embraer commercial aircraft operate for major US airlines including American, Delta, United, and Alaska Airlines.

Brazilian coffee producers, representing 32% of US coffee consumption, met virtually with State Department officials to argue that tariffs harm US consumers. Cecafé executive director Marcos Matos noted coffee prices jumped from $2.70-2.80 per pound to $3.40 since July's tariff announcement.

"The coffee market currently has low inventory levels, and measures like this are very detrimental. The costs end up being borne by consumers, in this case, Americans," Matos explained, requesting participation in September's public hearings.

The National Confederation of Industry countered criticism across multiple fronts, defending Brazil's Pix payment system as comparable to the Federal Reserve's FedNow while highlighting positive impacts on financial inclusion and e-commerce development.

CNI emphasised Brazil's anti-corruption legal framework, judicial independence, and Supreme Court role in guaranteeing business environment predictability. The organisation noted patent review times reduced to 2.9 years by 2025, approaching developed-country standards.

The National Confederation of Agriculture focused defense on preferential tariffs, ethanol market access, and illegal deforestation, with director Sueme Mori stating: "Brazil has become a major agricultural exporter because we are highly productive and competitive."

CNI highlighted strengthened environmental laws and enforcement against illegal deforestation, plus comprehensive licensing requirements throughout forest product production chains to demonstrate regulatory compliance.

Brazil's response reflects coordinated diplomatic strategy emphasizing WTO framework legitimacy over unilateral US action.

"Brazil does not recognize the legitimacy of investigations, determinations, or possible retaliatory actions taken outside the legal framework of the WTO," the government stated.

The investigation, expected to take at least one year, poses additional risks beyond current tariffs if USTR concludes Brazil engages in anticompetitive practices.

December public hearings will provide further opportunities for bilateral dialogue as both sides navigate escalating trade tensions affecting multiple industrial sectors and agricultural commodities critical to bilateral economic relations.