The United States has launched an investigation into Brazil’s trade practices, escalating tensions between the two countries and potentially laying the groundwork for punitive tariffs on South America’s largest economy.
The probe, announced on Tuesday by the Office of the US Trade Representative (USTR), will assess whether Brazil’s policies are "unreasonable or discriminatory and burden or restrict US commerce."
It comes days after President Donald Trump accused Brazil of unfairly targeting former president Jair Bolsonaro, his political ally, over an alleged coup attempt — and announced a 50 percent tariff on Brazilian products.
"I have determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action," US Trade Representative Jamieson Greer said in a statement, adding that the probe was ordered at Trump’s direction.
The USTR said the investigation would examine areas such as Brazil’s trade policies, tariffs, and its recent clashes with American tech companies — including its decision to block social media platform X during a legal dispute involving Elon Musk and a Brazilian judge.
The investigation was launched under Section 301 of US trade law, which allows the government to impose retaliatory measures if it finds foreign policies harm American business interests.
Trump had earlier sent a letter to Brazilian President Luiz Inacio Lula da Silva describing Bolsonaro’s treatment as “an international disgrace” and warning of consequences.
Lula responded by warning that any unilateral tariff hikes would be met with reciprocal action under Brazilian law.
