The Trump administration says it has launched an investigation into Brazil’s “unfair” trading practices.
It will include the Brazilian government’s policies “related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption interference”, a statement from the US Trade Representative said.
The investigation seeks to determine whether they are “unreasonable or discriminatory and burden or restrict US commerce.”
Last week, US President Donald Trump urged Brazilian authorities to end their prosecution of the country’s former President Jair Bolsonaro, accusing them of carrying out a “WITCH HUNT”.
Trade Ambassador Jamieson Greer said that the probe was being launched at Trump’s direction “into Brazil’s attacks on American social media companies as well as other unfair trading practices that harm American companies, workers, farmers, and technology innovators”.
Trump first flagged the investigation in a letter to Brazil’s president, Luiz Inácio Lula da Silva, last week.
In the same letter, Trump announced a 50% tariff on Brazil starting on 1 August. Lula said in response that Brazil would match any increase in tariffs.
Last year, trade between the two countries was worth $90bn, with the US selling more goods to Brazil.