The Trump administration has launched a formal investigation into Brazil’s trade policies, accusing the South American nation of engaging in unfair and discriminatory practices that harm US companies and workers.
In a statement released Tuesday, US Trade Representative Jamieson Greer said the probe, ordered by President Donald Trump, will examine Brazil’s treatment of digital trade, electronic payment services, preferential tariffs, anti-corruption enforcement, and intellectual property protections.
“I have determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action,” Greer stated. “These practices disadvantage American companies and threaten our technology, agriculture, and innovation-driven sectors.”
The announcement follows President Trump’s sharp criticism last week of Brazil’s ongoing prosecution of former President Jair Bolsonaro, which he described as a “witch hunt.” Trump had also warned of economic consequences if Brazilian authorities did not cease legal actions against Bolsonaro, a political ally of the former US president.
The new investigation will specifically assess whether Brazil’s policies are “unreasonable or discriminatory and burden or restrict US commerce,” the Office of the US Trade Representative (USTR) said.
Among the key concerns cited by US officials are Brazil’s preferential tariff arrangements with other countries, which are seen to disadvantage American exporters, and alleged efforts to penalize US-based digital platforms for not censoring political speech. In addition, the USTR accused Brazil of failing to enforce intellectual property rights adequately, thereby undermining American industries rooted in innovation and creativity. US officials also raised red flags over Brazil’s regulatory stance on digital trade and financial technologies, arguing that these measures could restrict American fintech and e-commerce firms operating in the country.
The tensions have been escalating since Trump sent a letter last week to Brazilian President Luiz Inácio Lula da Silva, warning of looming tariffs and criticizing the judiciary’s treatment of Bolsonaro. In that letter, Trump also announced a 50% tariff on Brazilian exports to the US. effective August 1.
President Lula responded by vowing to retaliate in kind, stating that Brazil would match any increase in US tariffs.
The trade investigation signals the Trump administration’s increasingly aggressive posture toward Brazil — a key trading partner — ahead of the August tariff deadline.
Last year, bilateral trade between the two countries reached $90 billion, with the US enjoying a $7.4 billion trade surplus — a 33% increase from the previous year, according to US government figures.
It remains unclear what specific actions the Trump administration may take following the probe, but potential outcomes include increased tariffs, sanctions, or new trade restrictions on Brazilian goods and services.
Observers say the investigation could further strain relations between Washington and Brasília at a time of global economic uncertainty and rising protectionism.
Both governments have yet to schedule formal trade talks, though White House officials have hinted at the possibility of negotiation before the August 1 deadline.
If no agreement is reached, the ongoing dispute could trigger a wider trade rift between the two largest economies in the Western Hemisphere.
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