Trump Initiates Investigation into Brazil’s Trade Practices Amid Tensions

The U.S. Trade Representative made the announcement, highlighting concerns over Brazil's policies that may affect American commerce.

In a move that intensifies trade tensions, the Trump administration is investigating Brazil's trade practices which it characterizes as "unfair." The inquiry will address a range of Brazilian government policies, including those related to digital trade, electronic payment services, unfair tariffs, and alleged anti-corruption interference. According to the U.S. Trade Representative, the investigation aims to assess whether these practices are "unreasonable or discriminatory," thereby putting restrictions on U.S. commerce.

In a more combative tone last week, President Donald Trump encouraged Brazilian authorities to cease their prosecution of former President Jair Bolsonaro, labeling it a "WITCH HUNT." Trade Ambassador Jamieson Greer commented that the investigation, initiated at Trump’s direction, pertains to attacks on American social media companies as well as broader unfair trading practices that impact U.S. businesses, workers, and technology sectors.

Trump's announcement of this investigation, communicated to Brazilian President Luiz Inácio Lula da Silva via letter, also included a significant measure: a 50% tariff on Brazilian goods effective from 1 August. In a quick rebuttal, Lula stated that Brazil would respond in kind to any such tariffs.

Last year, trade between the U.S. and Brazil reached $90 billion, with the U.S. exporting more goods to Brazil than the reverse. As developments unfold, additional insights will be provided, and observers are advised to keep an eye on the evolving situation.