The United States has initiated an investigation into Brazil’s trade policies, accusing the South American nation of “unfair trading practices” that could justify imposing new tariffs.
The move signals a deepening rift between the two countries, fueled in part by U.S. President Donald Trump’s criticism of Brazil’s legal actions against his political ally, former President Jair Bolsonaro.
The U.S. Trade Representative (USTR) announced the probe Tuesday, stating it will assess whether Brazil’s economic policies—including tariffs, regulatory barriers, and alleged discrimination against U.S. companies—harm American commerce. The investigation will also examine Brazil’s restrictions on U.S. social media firms, notably its temporary blocking of X (formerly Twitter) last year amid a clash between billionaire Elon Musk and a Brazilian judge.
The inquiry falls under Section 301 of U.S. trade law, a mechanism historically used to impose retaliatory tariffs. U.S. Trade Representative Jamieson Greer stated, “Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action.” He emphasized that the probe was launched at Trump’s direction.
Tensions flared further last week when Trump announced a 50% tariff on select Brazilian imports, despite the U.S. maintaining a trade surplus with Brazil. In a letter to Brazilian President Luiz Inácio Lula da Silva, Trump condemned the prosecution of Bolsonaro—who faces trial over alleged coup plotting after his 2022 election loss—as an “international disgrace.”
Lula responded defiantly, warning of reciprocal measures under Brazil’s Law of Economic Reciprocity. “Any unilateral tariff increases will be addressed accordingly,” he wrote on social media.
The investigation could escalate trade friction between the Western Hemisphere’s two largest economies, with potential repercussions for industries ranging from agriculture to technology. Analysts suggest the dispute reflects broader geopolitical strains, as Trump seeks to shield Bolsonaro while challenging Brazil’s left-leaning government.
The USTR’s findings, expected in the coming months, will determine whether the U.S. imposes new trade restrictions—a move that could further strain bilateral relations.
