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Trump launches investigation into Brazil's "unfair" trade practices

2025-07-16 08:18:00, Kosova & Bota CNA

Trump launches investigation into Brazil's "unfair" trade

The Trump administration says it has launched an investigation into Brazil's "unfair" trade practices.

It will include the Brazilian government's policies "regarding digital commerce and electronic payment services; unfair and preferential tariffs; and anti-corruption interventions," a statement from the U.S. trade representative said.

The investigation aims to determine whether they are "unreasonable or discriminatory and whether they burden or restrict American commerce."

Last week, US President Donald Trump asked Brazilian authorities to drop the criminal prosecution of the country’s former president, Jair Bolsonaro, accusing them of conducting a “witch hunt.” US Trade Representative Jamieson Greer said the investigation was being launched at Trump’s order “into Brazil’s attacks on US social media companies, as well as other unfair trade practices that harm American companies, workers, farmers and technology innovators.”

"I have determined that Brazil's tariff and non-tariff barriers deserve a full investigation and, potentially, retaliatory action," he said.

Greer accused Brazil of disadvantageing American exports by offering lower tariffs to other trading partners.

Investigators will investigate Brazil's alleged efforts to penalize US companies involved in digital commerce and services for not censoring political speech.

The office also alleged a lack of adequate enforcement of intellectual property rights, harming American workers "whose livelihoods are tied to America's sectors driven by innovation and creativity."

Trump first threatened the investigation in a letter to Brazil's president, Luiz Inácio Lula da Silva, last week.

In the same letter, the US president announced a 50% tariff on Brazil starting August 1. Lula said in response that Brazil would bear any tariff increases.

Last year, trade between the two countries reached $90 billion (£67.2 billion).

Washington reported a trade surplus with Brazil of $7.4 billion in 2024, a 33% increase compared to a year earlier./ CNA