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The Trump administration recently announced an investigation into what it perceives as Brazil’s “unfair” trading practices. This investigation will delve into various aspects, including the Brazilian government’s policies related to digital trade, electronic payment services, preferential tariffs, and anti-corruption interference.
The US trade representative highlighted that the aim is to assess whether these practices unreasonably burden or restrict commerce with the United States.
US President Donald Trump made headlines by calling on Brazilian authorities to halt the prosecution of former President Jair Bolsonaro, labeling it a “witch hunt.” The US Trade Representative, Jamieson Greer, stated that the investigation into Brazil’s actions was initiated at Trump’s behest.
Greer emphasized the need to address Brazil’s alleged attacks on American social media companies and other unfair trading practices that negatively impact American businesses, workers, farmers, and technology innovators.
Concerns and justifications
Greer pointed out that Brazil’s tariff and non-tariff barriers warrant a comprehensive examination, potentially leading to responsive measures.
The accusation of Brazil offering lower tariffs to other trading partners, thereby disadvantaging American exports, is a focal point of the investigation.
Of particular concern are alleged efforts by Brazil to penalize US companies in digital trade for not censoring political speech and the inadequate enforcement of intellectual property rights, which could harm US workers in innovation-driven sectors.
In response to the investigation, the US president announced a 50% tariff on Brazilian goods effective from August 1st. In a tit-for-tat move, Brazil indicated its intention to reciprocate any tariff increases imposed by the US.
Notably, trade between the two countries reached $90 billion last year, with Washington reporting a trade surplus of $7.4 billion in 2024, marking a 33% increase from the previous year.
By focusing on the US investigation into Brazil’s trade practices, the article sheds light on the escalating tensions between the two nations and the potential implications for their economic relationship.
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