The Trump administration has announced a probe into Brazil’s “unfair” trade practices. According to a statement from the US trade representative, it would address the Brazilian government’s practices “related to digital trade and electronic payment services; unfair, preferential tariffs; and anti-corruption interference”. The study aims to assess whether they are “unreasonable, discriminatory, and burden or restrict US commerce.” Last week, US President Donald Trump urged Brazilian authorities to cease their prosecution of former President Jair Bolsonaro, accusing them of conducting a “witch hunt”. According to US Trade Representative Jamieson Greer, the investigation is being conducted at Trump’s request “into Brazil’s attacks on American social media companies as well as other unfair trading practices that harm American companies, workers, farmers, and technology innovators”.
“I have determined that Brazil’s tariff and non-tariff barriers warrant a thorough investigation and, potentially, responsive action,” he stated. Greer accused Brazil of undercutting American goods by giving cheaper tariffs to other trading partners. Investigators will examine into Brazil’s reported attempts to punish US corporations involved in digital trade and services for not controlling political content. The agency also claimed that a lack of appropriate enforcement of intellectual property rights was harming US workers “whose livelihoods are tied to America’s innovation- and creativity-driven sectors.” Trump originally threatened the investigation in a letter to Brazilian President Luiz Inácio Lula da Silva last week.
In the same letter, the US president announced a 50% tariff on Brazil beginning on August 1. Lula responded by saying that Brazil will equal any tariff increases. Last year, commerce between the two countries was $90 billion (£67.2 billion). Washington reported a trade surplus of $7.4 billion with Brazil in 2024, a 33% rise from the previous year.
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