The Office of the US Trade Representative on Tuesday opened an investigation into Brazil over its trade practices and whether they are unfairly restricting US exports to the country, a week after President Donald Trump threatened a 50% tariff on the country.The investigation, being conducted under Section 301 of the 1974 Trade Act, will investigate Brazil’s practices and policies “related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption interference; intellectual property protection; ethanol market access; and illegal deforestation,” according to a fact sheet.
“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.
Trump last week said that he was directing Greer to immediately open a 301 investigation, citing what he said were “Brazil’s continued attacks on the Digital Trade activities of American Companies, as well as other unfair Trading Practices.”That letter to Brazil also said he was hitting the country with a 50% tariff starting on August 1, citing its treatment of former President Jair Bolsonaro, a right-wing populist leader who is facing charges over an alleged coup attempt. Trump has called for Brazil to drop the charges, characterizing it as a “Witch Hunt.”Trump’s tariffs on Brazil came amid a stream of letters to countries setting import taxes to take effect next month, after the US president failed to finalize many deals during a three-month negotiating period.Brazil’s case was unique, as it was not one of the countries targeted by higher so-called reciprocal tariffs in April and because Trump cited domestic political circumstances in justifying his levy. Brazil also runs a deficit in trade with the US, while almost all of his other tariff targets post large surpluses.
