The Trump administration has launched a formal investigation into what it calls Brazil’s “unfair” trade practices, targeting the South American nation’s policies on digital commerce, tariffs, and treatment of U.S. companies.
According to a statement from the Office of the U.S. Trade Representative (USTR), the probe will examine Brazil’s actions relating to digital trade and electronic payment services, preferential tariff arrangements, anti-corruption measures, and alleged interference with U.S. firms.
The aim is to determine whether these practices are “unreasonable or discriminatory” and whether they “burden or restrict U.S. commerce.”
U.S. Trade Representative Jamieson Greer said the investigation was launched at the direction of President Donald Trump and would include Brazil’s “attacks on American social media companies” and other trade actions perceived as harmful to U.S. industries.
“I have determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action,” Greer said, accusing Brazil of offering favorable tariffs to other trading partners at the expense of American exports.
The USTR also raised concerns about Brazil’s alleged failure to enforce intellectual property rights, saying this undermines U.S. workers and businesses in innovation-driven sectors. U.S. officials claim that American tech firms are being penalized in Brazil for refusing to censor political content, a move they view as retaliatory and restrictive.
The investigation follows a letter Trump sent last week to Brazilian President Luiz Inácio Lula da Silva, in which he urged Brazil to drop its legal cases against former President Jair Bolsonaro—calling the prosecution a “witch hunt.”
In the same letter, Trump announced that the U.S. would impose a 50% tariff on Brazilian imports starting August 1.
President Lula responded by warning that Brazil would impose reciprocal tariffs if the U.S. followed through.
Despite rising tensions, economic ties between the two nations remain significant.
In 2024, trade between the U.S. and Brazil reached $90 billion, with Washington reporting a $7.4 billion trade surplus—a 33% increase from the previous year.
