The Trump administration has launched a formal investigation into what it describes as “unfair and discriminatory” trade practices by Brazil, signaling a sharp escalation in trade tensions between the two major economies.
In a statement issued by the Office of the United States Trade Representative (USTR), the probe will examine a range of Brazilian government policies, including those affecting digital trade, electronic payment services, tariffs, and alleged interference in anti-corruption efforts. The goal, the USTR said, is to determine whether Brazil’s practices “burden or restrict U.S. commerce.”
The move comes just days after President Trump criticized the ongoing legal proceedings against Brazil’s former president, Jair Bolsonaro, calling it a “witch hunt” and urging the Lula administration to end the prosecution.
Trade Ambassador Jamieson Greer said the investigation was personally directed by President Trump and would focus on Brazil’s treatment of American social media companies as well as broader trade issues that harm U.S. farmers, workers, and tech firms.
This latest probe follows a formal letter Trump sent last week to Brazil’s President Luiz Inácio Lula da Silva, in which he also announced a 50% tariff on Brazilian goods effective August 1. President Lula quickly responded, warning that Brazil would mirror any tariff hike imposed by Washington.
The standoff comes at a time when bilateral trade between the U.S. and Brazil is booming. In 2024, trade volume reached $90 billion, with the U.S. posting a $7.4 billion trade surplus, up 33% from the year before.
As the August deadline looms, economists warn that a full-blown trade dispute between the Western Hemisphere’s two largest economies could rattle markets and disrupt key sectors, from agriculture to tech.
