Brazil Enlists Top US Law Firm Baker McKenzie to Counter Section 301 Trade Probe

Brazil has deployed heavyweight legal firepower against an escalating trade conflict with the United States, hiring global law firm Baker McKenzie to defend against a high-stakes Section 301 investigation launched by the U.S. Trade Representative (USTR). The probe, initiated on July 15, 2025, examines Brazilian policies on digital trade, ethanol tariffs, intellectual property rights, and environmental regulations—putting billions in bilateral trade at risk.

Brazil’s Strategic Legal Countermove

Brazil’s Foreign Ministry secured Baker McKenzie through a $275,000 contract extending through January 2026. The agreement, governed by Brazilian procurement rules, ensures payment only for services rendered. The firm’s selection signals Brazil’s intent to leverage top-tier American legal expertise against potential U.S. tariffs. Baker McKenzie—the largest U.S. law firm with 4,000+ lawyers across 70 offices—brings proven WTO litigation experience from representing clients like Apple and sovereign governments. Though individual attorneys donate to U.S. political parties, the firm maintains strict nonpartisanship in its advocacy.

“This isn’t just legal defense—it’s economic survival,” noted trade analyst Maria Silva (Global Trade Review, August 2025). “Brazil exports $32 billion annually to the U.S. Retaliatory tariffs could cripple key sectors.”

The High-Stakes Trade Battle

The USTR’s investigation could trigger tariffs exceeding 50% on Brazilian goods under Section 301 of U.S. trade law—a mechanism previously used against China and the EU. At issue are Brazil’s:

• Digital trade barriers impacting U.S. tech firms
• Ethanol import restrictions affecting agricultural exporters
• Customs delays disrupting supply chains
• Environmental policies seen as nontariff trade barriers

Brazilian industries face catastrophic revenue losses if tariffs materialize. The National Confederation of Industry warns of 120,000 potential job losses in manufacturing states like São Paulo. Meanwhile, U.S. businesses fear higher costs for Brazilian coffee, aircraft parts, and iron ore.

Global Implications and Next Steps

Baker McKenzie’s strategy will likely challenge the probe’s legitimacy while negotiating behind closed doors. Historical precedents are sobering: The 2018 U.S.-China Section 301 dispute sparked $550 billion in reciprocal tariffs (Peterson Institute, 2024). Both nations will present evidence during public hearings this fall, with a USTR ruling expected by Q1 2026.

Brazil’s gamble on elite U.S. legal talent underscores a harsh reality: In modern trade wars, courtrooms are as decisive as boardrooms. As negotiations intensify, businesses worldwide should brace for supply chain turbulence—and consumers may soon pay the price at the checkout counter.

Must Know

Q: What triggered the U.S. Section 301 investigation against Brazil?
A: The USTR initiated the probe on July 15, 2025, citing concerns over Brazil’s digital trade rules, ethanol tariffs, intellectual property enforcement, and environmental compliance standards.

Q: How could this dispute impact U.S. consumers?
A: Retaliatory tariffs would raise prices on Brazilian imports like electronics, machinery, and agricultural goods—potentially increasing U.S. inflation by 0.5%–1.2% (Federal Reserve estimates).

Q: Why did Brazil choose Baker McKenzie specifically?
A: The firm’s unmatched experience with WTO litigation, U.S. trade law, and relationships with American regulators made it Brazil’s strategic choice to counter the Section 301 allegations.

Q: What’s the worst-case scenario for Brazil?
A: If the USTR imposes maximum tariffs, Brazil could lose $8.7 billion in annual exports and face significant unemployment in export-dependent sectors, according to Brazilian government projections.

Q: Can this dispute be resolved without tariffs?
A: Yes—Baker McKenzie’s mandate includes negotiating a settlement before the USTR’s final ruling deadline in early 2026. Historical resolution rates hover near 68% (WTO data).