Trump launches probe into Brazil’s ‘unfair’ trade practices
The Trump administration indicates that it has launched an investigation into Brazil’s “unfair” commercial practices.
It will include the policies of the Brazilian government “linked to digital trade and electronic payment services; unjust and preferential rates; anti-corruption interference,” said a statement from the American commercial representative.
The investigation aims to determine whether they are “unreasonable or discriminatory and burden or restrict American trade”.
Last week, US President Donald Trump urged Brazilian authorities to pursue their former president of the country, Jair Bolsonaro, accusing them of having done a “witch hunt”.
US trade representative Jamieson Greer said the investigation was launched towards Trump “in Brazil’s attacks on American social media companies as well as other unfair negotiation practices that harm American businesses, workers, farmers and technological innovators.”
“I determined that the price and non-tariff barriers of Brazil deserve an in-depth investigation and, potentially, a reactive action,” he said.
Greer accused Brazil of disadvantage of American exports by offering less tariffs than other business partners.
Investigators will examine alleged attempts from Brazil to penalize American companies involved in trade and digital services so as not to have censored political speech.
The office has also alleged an adequate lack of application of intellectual property rights, harming American workers “whose livelihoods are linked to the innovation and creativity sectors of America”.
Trump first threatened the investigation in a letter to the president of Brazil, Luiz Inácio Lula da Silva last week.
In the same letter, the American president announced a rate of 50% on Brazil from August 1. Lula said in response that Brazil would equalize any increase in prices.
Last year, trade between the two countries was worth $ 90 billion (67.2 billion pounds sterling).
Washington reported a trade surplus with Brazil of $ 7.4 billion in 2024, an increase of 33% for the previous year.
