Trump Initiates Investigation into Brazil's Trade Practices

In light of escalating tensions, the US Trade Representative has officially launched an inquiry into Brazil's trade practices, targeting areas such as digital trade, tariffs, and anti-corruption measures.

The Trump administration has taken a significant step by starting an investigation into Brazil, claiming that several of the country's trade practices are unfair to American businesses. The investigation will focus on a variety of issues, including digital commerce regulations, electronic payment services, preferential tariffs, and interference related to corruption. A representative from the US Trade Office indicated that these policies may be discriminatory and hinder US trade.

Just last week, President Trump publicly urged the Brazilian government to terminate its legal actions against former President Jair Bolsonaro, labeling the ongoing prosecutions a "WITCH HUNT." Jamieson Greer, the US Trade Ambassador, noted that the investigation targets attacks on American technology firms and other practices viewed as detrimental to US economic interests.

The roots of this investigation can be traced back to a letter Trump sent to Brazilian President Luiz Inácio Lula da Silva, where he outlined his concerns and also announced a steep 50% tariff on Brazilian imports starting August 1st. In retaliation, Lula stated that Brazil would impose a corresponding tariff increase. Last year, trade between Brazil and the US was substantial, amounting to approximately $90 billion, particularly favoring US exports.

This article will be updated as more information becomes available. For real-time alerts, you can download the BBC News App or follow their updates on X.