The United States has officially started an investigation into Brazil’s trade practices. This move came just a week after Washington imposed 50% tariffs on Brazilian products, blaming the South American country for unfair trading methods.

Focus of the Investigation

The US Trade Representative’s office issued a statement outlining the main areas of the probe. According to the statement, the investigation will examine Brazil’s policies connected to digital trade, electronic payment services, unfair and preferential tariffs, and what it calls “anti-corruption interference.”

Reason Behind the US Action

Jamieson Greer, the US Trade Representative, explained that President Donald Trump ordered this investigation. Greer said the probe targets Brazil’s alleged attempts to harm American technology firms and exporters. He accused Brazil of “attacking American social media companies” and of adopting policies that negatively impact US farmers, workers, and tech industries.

Greer also said, “I have determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action.” He claimed that Brazil, under its current president Luiz Inacio Lula da Silva, imposes higher tariff rates on American products than on those from other countries.

The US also accuses Brazil of punishing American digital businesses for not censoring political opinions online.

US-Brazil Trade Dispute Deepens

The trade tensions worsened after President Trump imposed a steep 50% tariff on Brazilian imports. He accused Brazil of using unfair methods in trade and of running what he described as a “witch trial” against Brazil’s former leader Jair Bolsonaro.

NATO Issues Warning to Brazil

Adding to Brazil’s challenges, NATO Secretary General Mark Rutte warned that Brazil, along with India and China, could face tough secondary sanctions if they continue economic cooperation with Russia.

Rutte issued the warning after his meetings with US lawmakers. He referred to Trump’s new plan, where countries buying Russian goods might face 100% secondary tariffs if Russia refuses to accept a peace deal within 50 days.

Rutte said, “My encouragement to these three countries, particularly is, if you live now in Beijing, or in Delhi, or you are the president of Brazil, you might want to take a look into this, because this might hit you very hard.”