U.S. government targets Brazil with trade probe and tariff threat

U.S. Trade Representative Jamieson Greer has announced the launch of an investigation into Brazil’s trade practices, following President Donald Trump’s warning of a 50% tariff on imports from the country.

The probe will assess whether Brazil’s approach to digital trade, preferential tariffs, and other trade-related policies are discriminatory and harmful to U.S. commerce. Greer said the decision came after extensive consultations and cited harm to American workers, farmers, and tech firms as a result of Brazil’s alleged practices.

"At President Trump’s direction, I am launching a Section 301 investigation into Brazil’s attacks," he added in a statement.

The move is part of President Donald Trump’s wider second-term trade strategy, which imposes tariffs on key partners to realign global trade in favour of the U.S.

Trump's 50% tariff on Brazil, effective from 1 August, is a steep hike from the proposed 10% and tied to calls to stop former President Jair Bolsonaro’s coup-related trial.

Trade experts expressed surprise at the high tariff, especially given that Brazil imports more from the U.S. than it exports.

Meanwhile, Brazil has not responded to the investigation. Vice President Geraldo Alckmin noted that Washington has yet to reply to proposals made in earlier trade talks.

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