President Trump initiates a Section 301 investigation into Brazil's trade practices, escalating tensions with the South American nation and potentially igniting a global trade war.
The United States has launched an investigation into what it deems "unfair" trade practices by Brazil, marking a significant escalation in President Donald Trump's conflict with the South American nation. The investigation, launched under Section 301 of the Trade Act of 1974, will focus on various areas including digital trade, electronic payment services, preferential tariffs, anti-corruption interference, intellectual property protection, ethanol market access, and illegal deforestation. The USTR (United States Trade Representative) stated that the investigation aims to determine whether Brazil's practices "unreasonably or discriminatorily burden or restrict" American commerce. The investigation also targets alleged retaliatory actions by Brazilian authorities against American social media companies for failing to censor political speech. Furthermore, the U.S. accuses Brazil of disadvantaging American exports through preferential tariffs offered to other trade partners, insufficient intellectual property protection, and increased tariffs on US ethanol. This action follows a letter from President Trump to Brazilian President Luiz Inácio Lula da Silva, accusing Brazil of a "witch hunt" against former President Jair Bolsonaro and threatening a 50% tariff. The US currently enjoys a significant trade surplus with Brazil, unlike most other countries targeted by Trump's tariffs. Brazil's President Lula has vowed to retaliate against any imposed tariffs and is considering filing a complaint with the World Trade Organization.
