US Launches Formal Trade Probe into Brazil Amid Tariff Threats and Diplomatic Spat
WASHINGTON D.C./BRASÍLIA – The United States has initiated a formal trade investigation into Brazil, significantly escalating tensions between the two major economies. This move follows an announcement by US President Donald Trump of a 50% tariff on Brazilian goods, justified by the administration over disputes concerning digital trade, censorship, and alleged unfair trade practices.
The US Trade Representative (USTR) Jameson Greer stated the inquiry, ordered by Trump under Section 301 of the Trade Act, will review whether Brazil's actions are discriminatory and burden US commerce. Issues under scrutiny include alleged censorship orders impacting American tech firms, preferential tariffs favoring other trade partners, a lack of enforcement on illegal deforestation, and anti-corruption interference. Concerns also extend to intellectual property protection and Brazil's imposition of higher tariffs on US ethanol.
Despite official US data indicating a trade surplus with Brazil, not a deficit, President Trump publicly justified the tariff threat by claiming "attacks on American tech firms" for not censoring political speech on their platforms. The administration specifically accused Brazil's courts of issuing "unlawful takedown orders" to US-based platforms.
Brazilian President Luiz Inácio Lula da Silva has responded sharply, warning of retaliation and considering a case with the World Trade Organization (WTO). Lula vehemently denied the US trade deficit claim, asserting that the US actually enjoys a trade surplus with Brazil. He condemned the tariff threat as a "political provocation" and an attempt to influence Brazil's internal policies through economic pressure.
"I want to say with all due respect to President Trump, you are misinformed. Misinformed. The United States does not have a trade deficit with Brazil," Lula stated, emphasizing that Brazil would fight the proposed tariffs on all fronts, including diplomatic channels and with BRICS colleagues. He warned that if negotiations fail, Brazil will "certainly establish reciprocity" by imposing equivalent taxes on US goods.
The unfolding trade dispute highlights growing friction over geopolitical alignment, economic policies, and the role of free speech online between the Trump administration and Lula's government.
