The investigation reflects escalating economic tensions as Trump also targets Brazil's actions towards social media companies and former president Jair Bolsonaro.
Trump Initiates Investigation into Brazil's Trade Practices Amidst Rising Tensions
Trump Initiates Investigation into Brazil's Trade Practices Amidst Rising Tensions
The US announces a probe into Brazil's trading policies, claiming unfair practices against American businesses.
In a significant development, the Trump administration has officially commenced an investigation into what it terms Brazil's "unfair" trade practices. The probe, as outlined by the US trade representative, will explore Brazil's governmental policies regarding digital trade, electronic payment services, as well as allegations of preferential tariffs and anti-corruption interference. This investigation aims to assess whether Brazil's practices create unreasonable barriers that negatively impact American commerce.
Last week, President Trump called upon Brazilian authorities to cease their legal action against former President Jair Bolsonaro, describing the prosecution as a "witch hunt". US Trade Representative Jamieson Greer confirmed that the investigation had been initiated at Trump's behest, citing specific concerns about Brazil's treatment of American social media companies and other detrimental trading practices that adversely affect US firms, laborers, farmers, and technology innovators.
Greer pointed out that Brazil has been disadvantaging US exports by extending lower tariffs to its other trading partners. The investigation will include evaluating Brazilian measures that may penalize US firms engaging in digital trade and services for their perceived lack of censorship over political dialogue. Additionally, the US has raised concerns over Brazil's inadequate enforcement of intellectual property rights, which poses risks to American workers tied to innovation-driven sectors.
The groundwork for this inquiry was laid in a letter sent by Trump to Brazilian President Luiz Inácio Lula da Silva, where he also announced a substantial 50% tariff on Brazilian imports effective from August 1. In response, Lula indicated that Brazil would mirror any tariff increases, highlighting the potential for escalating trade conflict. The total trade between the two nations reached $90 billion last year, with the US enjoying a trade surplus of $7.4 billion, marking a 33% increase from the previous year.
As tensions rise between the two countries, questions loom over the implications of this investigation and whether it could adversely affect Bolsonaro's political standing.
Last week, President Trump called upon Brazilian authorities to cease their legal action against former President Jair Bolsonaro, describing the prosecution as a "witch hunt". US Trade Representative Jamieson Greer confirmed that the investigation had been initiated at Trump's behest, citing specific concerns about Brazil's treatment of American social media companies and other detrimental trading practices that adversely affect US firms, laborers, farmers, and technology innovators.
Greer pointed out that Brazil has been disadvantaging US exports by extending lower tariffs to its other trading partners. The investigation will include evaluating Brazilian measures that may penalize US firms engaging in digital trade and services for their perceived lack of censorship over political dialogue. Additionally, the US has raised concerns over Brazil's inadequate enforcement of intellectual property rights, which poses risks to American workers tied to innovation-driven sectors.
The groundwork for this inquiry was laid in a letter sent by Trump to Brazilian President Luiz Inácio Lula da Silva, where he also announced a substantial 50% tariff on Brazilian imports effective from August 1. In response, Lula indicated that Brazil would mirror any tariff increases, highlighting the potential for escalating trade conflict. The total trade between the two nations reached $90 billion last year, with the US enjoying a trade surplus of $7.4 billion, marking a 33% increase from the previous year.
As tensions rise between the two countries, questions loom over the implications of this investigation and whether it could adversely affect Bolsonaro's political standing.
