Key points
- I have determined that Brazil’s tariff and non-tariff barriers merit a thorough probe: US Trade Representative
- Says the probe was opened at Trump’s direction
- Lula warns of possible reciprocation in response to Trump’s tariff letter
WASHINGTON: The United States said Tuesday it is investigating Brazil’s “unfair trading practices,” which could provide a legal basis to justify imposing tariffs on South America’s largest economy.
The probe will determine if Brazil’s economic policies and practices in a number of areas are “unreasonable or discriminatory and burden or restrict US commerce,” the Office of the US Trade Representative said in a statement.
It added that Brazil’s “attacks on American social media companies” will also be considered.
This investigation under a commerce law called Section 301 could, depending on its conclusions, lead to punitive US measures such as tariffs.
50pc tariff on Brazilian products
“I have determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action,” said US Trade Representative Jamieson Greer.
He added that the probe was opened at Trump’s direction.
The US president last week announced a 50 per cent tariff on Brazilian products even though the United States runs a trade surplus with Brazil.
In a letter informing his Brazilian counterpart Luiz Inacio Lula da Silva of the planned measure, Trump criticised the treatment of Bolsonaro as an “international disgrace.”
Bolsonaro is facing trial over accusations he plotted a coup after his narrow 2022 election loss to Lula.
Lula warned of possible reciprocation in response to Trump’s tariff letter, saying that “any unilateral tariff increases will be addressed in light of the Brazilian Law of Economic Reciprocity.”
