**Trump Initiates Investigation into Brazil's Trade Policies Amid Tensions**

Thu Jul 17 2025 00:53:37 GMT+0300 (Eastern European Summer Time)
**Trump Initiates Investigation into Brazil's Trade Policies Amid Tensions**

The US administration claims Brazil's trade practices are detrimental to American businesses and commerce.


The inquiry will assess Brazil's digital trade policies and tariff structures, with implications for US-Brazil relations.

In a move signaling escalating trade tensions, the Trump administration announced an investigation into Brazil’s alleged “unfair” trade practices. This inquiry will scrutinize the Brazilian government's regulations concerning digital trade, electronic payment services, preferential tariffs, and potential anti-corruption interference detrimental to US businesses.

The investigation aims to ascertain if these practices are "unreasonable or discriminatory, burdening or restricting US commerce," according to a statement from the US trade representative. This action follows President Trump's recent calls for Brazil to cease its prosecution of former President Jair Bolsonaro, labeling their efforts a "witch hunt."

US Trade Representative Jamieson Greer confirmed that this investigation was ordered by Trump due to ongoing issues affecting American social media firms and broader unfair trading practices. Greer voiced concerns over Brazil’s tariff and non-tariff barriers, which he believes necessitate a comprehensive examination and possible responsive measures.

Allegations have surfaced that Brazil has favored other trade partners with lower tariffs while putting US exports at a disadvantage. The inquiry will look into claims that American companies engaged in digital trade are penalized for not moderating political content, as well as inadequate protections for intellectual property rights that jeopardize American jobs in innovation and creative industries.

Trump's imposition of a 50% tariff on Brazilian goods starting August 1, as stated in a letter to Brazilian President Luiz Inácio Lula da Silva, has further fueled the fire. In response, Brazil's Lula pledged to retaliate against any tariffs imposed. Trade between the nations reached $90 billion last year, with the US enjoying a $7.4 billion surplus with Brazil, reflecting a 33% increase from the previous year. As these diplomatic tensions unfold, questions arise about the broader implications for both nations' economies and political landscapes.

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