WASHINGTON (DTN) -- When President Donald Trump's universal tariffs were struck down by the Supreme Court in February, he warned that his administration had other authorities available to create a level playing field for American producers.

Now, cattle organizations are united in criticizing the United States Trade Representative for not using those authorities on Brazilian beef, instead offering an exemption from proposed tariff action on the Section 301 investigation.

"Exempting the principal derivative of cattle from the proposed 25% tariff action would substantively undermine the Trade Representative's objective of eliminating the improper acts, policies, or practices contributing to illegal deforestation in Brazil," said Bill Bullard, CEO of R-CALF USA.

At the U.S. International Trade Commission this week, industries whose products are included on the proposed 25% tariff list testified either in favor of maintaining the tariffs or in support of exemptions.

The Section 301 USTR investigation is alleging forced labor practices in 60 countries, while Brazil separately faces scrutiny over illegal deforestation and other trade concerns.

Through the process, cattle groups have sought to eliminate the exemption for Brazilian beef, while corn and ethanol advocates generally supported the tariffs. Seed and feed ingredient industries have requested exemptions for products critical to U.S. agriculture. Brazilian representatives, meanwhile, argued that broad sanctions would hurt U.S. consumers more than Brazil.

But USTR is caught between President Trump's passion for tariffs to level trade and his desire to bring down beef prices for average Americans.

Earlier this year, Trump waived tariff rate quotas on Argentine beef in a move to try to lower beef prices. And in May, he proposed eliminating tariffs on imported beef before later withdrawing the proposal. Read more at, "Trump Delays Plan to Waive Beef Tariffs," https://www.dtnpf.com/….

But Americans continue to pay record prices for beef, averaging $6.75 a pound for hamburger, according to the St. Louis Federal Reserve Bank -- leaving cattlemen confused on his strategy moving forward.

CATTLE GROUPS UNITED

In written comments, the National Cattlemen's Beef Association said, "The proposed course of action will not help lower beef prices, it sends a dangerous message to our trade partners and increases dependency on beef imports rather than encouraging domestic herd expansion."

NCBA also requested that USTR remove all bovine products from the list of tariff exemptions and use the opportunity to hold Brazil accountable.

Collectively, the groups argue that the beef exemption contradicts the purpose of the Section 301 investigation. They contend Brazil's cattle industry benefits from illegal deforestation and weak environmental enforcement, and that Brazilian beef should not receive preferential treatment while other Brazilian products face tariffs.

Brazilian meatpackers exported $1.66 billion in beef to the U.S. in 2025 -- a record for the country. Through the first four months of this year, Brazil has shipped nearly $928 million in beef to the U.S., up 41% from the first quarter of last year, according to USDA data.

The United States Cattleman's Association goes further by arguing that illegal land clearing functions as an economic subsidy because ranchers acquire pasture at artificially low costs.

Bullard told DTN that this latest notice from the Trump administration suggests, "that we were reversing course and reverting back to where we had previously been, and that is an overly liberal trade policy that was facilitating more imports into this country and essentially decimating our domestic production capacity."

After their testimony Monday, Bullard said he hopes "the (Trump) administration is beginning to realize that, that if we continue down this path ... then we will continue to dismantle our competitive infrastructure for the industry, we will continue to lose producers. Our cow herd would continue to shrink."

The executive authorities used by Trump include Section 232 tariffs, which allow the president to impose import duties on products deemed a threat to U.S. national security, and Section 301 investigations, which examine unfair foreign trade practices and can lead to retaliatory tariffs.

WILL CATTLEMEN BE HEARD?

The Section 301 process has provided an unusual venue for agriculture to debate trade policy, particularly on beef and ethanol.

Patrick T. Childress, a trade attorney with Holland & Knight in Washington, wrote in a recent blog that the timing of these investigations is less about deforestation or forced labor and more about replacing the tariff authority lost after the Supreme Court's ruling.

"The administration has been clear about the purpose and goal of the current Section 301 investigations: to levy new tariffs that replace, at least in part, the IEEPA tariffs the Supreme Court struck down in February," he said.

Stakeholders testified before the proposed notice of determination was issued in September and again this week.

"This level of direct, face-to-face public participation in U.S. trade policy formulation is rare. For example, when the administration imposed sweeping tariffs under IEEPA last year, no formal public input was solicited or required," he said.

Whether this week's testimony ultimately changes the administration's approach remains uncertain. Childress said that if the administration is determined to use Section 301 tariffs to replace much of the IEEPA tariff structure, "no amount of stakeholder engagement is likely to change that basic, overall approach."

He added that USTR may still seek to strengthen its legal record in anticipation of future litigation by creating greater distinction between the previous IEEPA tariffs and any new Section 301 actions.

One witness told DTN that organizations are typically allowed to submit supplemental information after hearings, but that opportunity was not provided this time.

BRAZIL MOUNTS ITS DEFENSE

Brazilian farm groups and government officials also traveled to Washington to defend the country's agricultural practices and highlight the U.S.'s $14.4 billion trade surplus with Brazil in 2025.

Fernanda Carneiro of the Brazilian Confederation of Agriculture and Livestock (CNA) testified alongside American cattle producers, defending Brazil's Forest Code and environmental monitoring system, arguing Brazil is unique in requiring private landowners to preserve forests without government subsidies.

"Brazilian agricultural competitiveness is primarily the result of continuous productivity gains, technological innovation, and the efficient use of land and natural resources, rather than unlawful practices," CNA said.

CNA argued that Section 301 requires proof that Brazil's actions materially harm U.S. commerce and contended USTR has failed to establish that burden.

Instead, "targeted cooperation offers a more effective and proportionate approach than broad trade measures," the organization said.

A final USTR determination would give the president authority to impose the proposed 25% duties on covered products.

Brazilian representatives from both the cattle and ethanol sectors warned that their government could pursue reciprocal measures if the tariffs take effect.

On Tuesday, Brazilian Sen. Flavio Bolsonaro, a presidential candidate and son of former Brazilian President Jair Bolsonaro, is scheduled to testify on behalf of the Brazilian government.

"A tariff now aimed at Brazil risks the same boomerang -- pushing Brazil further away from the traditionally close trade partnership with the United States, at the expense of American exporters and American influence in the hemisphere," Bolsonaro written comments on behalf of Brazil said.

Read more at, "Ethanol Nears Access to Brazil," https://www.dtnpf.com/…

Holland & Knight Blog on 301 Hearings: https://www.hklaw.com/…

Submitted Comments from the Brazilian Senate, Flavio Bolsonaro: https://comments.ustr.gov/…

National Cattleman Beef Association (NCBA) Letter: https://comments.ustr.gov/…

U.S. Cattleman's Association (USCA) comment submission: https://comments.ustr.gov/…

Jake Zajkowski can be reached at jake.zajkowski@dtn.com

Follow him on social platform X @jzajkow

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