Trump launches probe into Brazils unfair trade practices

The Trump administration says it has launched an investigation into Brazils "unfair" trading practices.

It will include the Brazilian governments policies "related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption interference", a statement from the US trade representative said.

The investigation seeks to determine whether they are "unreasonable or discriminatory and burden or restrict US commerce."

Last week, US President Donald Trump urged Brazilian authorities to end their prosecution of the countrys former President Jair Bolsonaro, accusing them of carrying out a "witch hunt".

US Trade Representative Jamieson Greer said the probe was being launched at Trumps direction "into Brazils 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 Brazils tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action," he said.

Greer accused Brazil of disadvantaging American exports by offering lower tariffs to other trade partners.

Investigators will look into alleged attempts by Brazil to penalise US companies involved in digital trade and services for not censoring political speech.

The office also alleged a lack of adequate enforcement of intellectual property rights, harming US workers "whose livelihoods are tied to Americas innovation- and creativity-driven sectors."

Trump first threatened the investigation in a letter to Brazils president, Luiz Inácio Lula da Silva, last week.

In the same letter, the US president announced a 50% tariff on Brazil starting on 1 August. Lula said in response that Brazil would match any increase in tariffs.

Last year, trade between the two countries was worth $90bn (£67.2bn).

Washington reported a trade surplus with Brazil of $7.4bn in 2024, a 33% percent increase on the previous year.