The Trump administration has officially launched an investigation into alleged "unfair" trading practices by Brazil that are believed to harm American businesses and influence global trade. According to a statement from the US Trade Representative, the inquiry will scrutinize various aspects of Brazilian policy, particularly those concerning digital trade, electronic payment services, preferential tariffs, and anti-corruption measures.
This probe follows President Trump's recent call for Brazilian authorities to halt their legal actions against former President Jair Bolsonaro, which he described as a "witch hunt." US Trade Representative Jamieson Greer announced that the investigation comes at Trump's directive to evaluate Brazil's policies that are perceived to disadvantage US companies and labor forces, particularly in the fields of technology and innovation.
Greer stated, “I have determined that Brazil's tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action.” He further criticized Brazil for offering lower tariffs to its trade partners while adversely impacting American exports.
The investigation will explore allegations regarding Brazil penalizing US companies for failing to moderate political discourse online and the insufficient enforcement of intellectual property rights, which could threaten American jobs linked to creativity and technology.
Last week, Trump communicated the intention to investigate directly to Brazilian President Luiz Inácio Lula da Silva, announcing an impending 50% tariff on Brazil scheduled to take effect on August 1. Lula swiftly responded, indicating that Brazil would retaliate with corresponding tariff increases.
The trade relationship between the US and Brazil is significant, with a total value of $90 billion reported last year, and the US enjoying a $7.4 billion trade surplus. As tensions rise with these recent developments, analysts are questioning the implications for Bolsonaro and broader US-Brazil relations.
This probe follows President Trump's recent call for Brazilian authorities to halt their legal actions against former President Jair Bolsonaro, which he described as a "witch hunt." US Trade Representative Jamieson Greer announced that the investigation comes at Trump's directive to evaluate Brazil's policies that are perceived to disadvantage US companies and labor forces, particularly in the fields of technology and innovation.
Greer stated, “I have determined that Brazil's tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action.” He further criticized Brazil for offering lower tariffs to its trade partners while adversely impacting American exports.
The investigation will explore allegations regarding Brazil penalizing US companies for failing to moderate political discourse online and the insufficient enforcement of intellectual property rights, which could threaten American jobs linked to creativity and technology.
Last week, Trump communicated the intention to investigate directly to Brazilian President Luiz Inácio Lula da Silva, announcing an impending 50% tariff on Brazil scheduled to take effect on August 1. Lula swiftly responded, indicating that Brazil would retaliate with corresponding tariff increases.
The trade relationship between the US and Brazil is significant, with a total value of $90 billion reported last year, and the US enjoying a $7.4 billion trade surplus. As tensions rise with these recent developments, analysts are questioning the implications for Bolsonaro and broader US-Brazil relations.
