Trump opens probe into Brazil's 'unfair' trade practices days after imposing 50% tariffs

The Trump administration has launched an investigation into Brazil’s “unfair” trading practices, a week after the US slapped 50 per cent tariffs on the nation.

A statement from the US trade representative noted that the probe will focus on the Brazilian government’s policies “related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption interference”.

The US and Brazil are engaged in a trade dispute after President Donald Trump imposed a 50 per cent tariff on Brasilia, accusing the country of unfair trade practices and running a “witch trial” against former president Jair Bolsonaro.

Why is US probing Brazil?

US Trade Representative Jamieson Greer has said that the investigation against Brazil is being carried out 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”.

“I have determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action,” he said.

Greer claimed that Brazil, under President Luiz Inacio Lula da Silva, subjects America to much higher tariff rates than its other trading partners, hurting the country’s economy.

The probe will also find substance on the alleged attempts by Brazil to penalise US companies involved in digital trading and services for not censoring political speech.

Nato warns Brazil

Nato Secretary General Mark Rutte on Wednesday warned that countries like Brazil, China, and India risk facing severe secondary sanctions if they continue economic ties with Russia.

Rutte issued the warning during a meeting with US senators, a day after President Donald Trump announced new weapons for Ukraine and threatened to impose “biting” 100% secondary tariffs on buyers of Russian exports unless a peace agreement is reached within 50 days.

“My encouragement to these three countries, particularly is, if you live now in Beijing, or in Delhi, or you are the president of Brazil, you might want to take a look into this, because this might hit you very hard,” Reuters quoted Rutte as saying to reporters.

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