Trump Initiates Investigation into Brazil's Trade Policies

Sun Dec 07 2025 06:08:15 GMT+0200 (Eastern European Standard Time)

The US Administration seeks to address alleged unfair trade practices by Brazil, affecting commerce and digital trade.

The investigation focuses on Brazil's tariffs, digital trade policies, and the protection of American interests in the marketplace.

In a decisive move, the Trump administration has announced the initiation of an investigation into what it describes as Brazil's "unfair" trading practices. This comes in response to concerns over various policies enforced by the Brazilian government, specifically those related to digital trade and electronic payment services, preferential tariffs, and anti-corruption measures, as stated by the US Trade Representative.

The investigation aims to determine whether Brazil's actions are "unreasonable or discriminatory" thereby restricting US commerce. Last week, President Trump urged Brazilian officials to cease prosecuting former President Jair Bolsonaro, labeling the actions as a "witch hunt."

US Trade Representative Jamieson Greer indicated that Trump's directive originated after identifying Brazil's actions as detrimental to American businesses. He emphasized that Brazil's tariff and non-tariff barriers warrant a full investigation and the possibility of further action.

Greer claims that Brazil has been providing advantageous tariff rates to other trading partners, to the disadvantage of American exports. The investigation will delve into claims that Brazil has penalized US companies operating in digital sectors for failing to censor political discourse. Furthermore, the US has criticized Brazil for inadequate enforcement of intellectual property rights, which it argues detrimentally impacts US labor reliant on innovation and creativity.

The probe was first mentioned by Trump in a letter addressed to Brazilian President Luiz Inácio Lula da Silva, wherein he also announced a substantial 50% tariff on Brazilian goods starting August 1. Lula responded by indicating a willingness to implement corresponding tariff increases. Trade data from the previous year indicated a $90 billion trade relationship between the US and Brazil, with the US recording a surplus of $7.4 billion in 2024—a significant increase from prior years.

As tensions rise, the implications of this trade investigation could shape future relations between the two nations and impact Bolsonaro's standing amidst scrutiny.