Washington Announces Investigation Into Brazilian Trade Practices, Digital Payment Services

U.S. Trade Representative Jamieson Greer’s probe comes after Trump threatened 50 percent tariffs on Latin America’s largest economy.

U.S. Trade Representative Jamieson Greer in Washington on April 8, 2025. Kevin Mohatt/File Photo/ Reuters

U.S. Trade Representative Jamieson Greer announced the opening of an investigation into Brazil’s “unfair” trading practices on July 15.

The commencement of the probe comes a week after President Donald Trump announced 50 percent tariffs on imports from the country.

He said he planned to impose the exceptionally high rate, far higher than the 10 percent levy on goods from most other nations, because of Brazil’s continuing pursuit of a trial against former Brazilian President Jair Bolsonaro for allegedly plotting a coup d'état.

Greer’s investigation will look to determine whether acts, policies, and practices enacted by Brazil—related to digital trade and electronic payment services, such as preferential tariffs, anti-corruption interference, intellectual property protection, ethanol market access, and illegal deforestation—are “unreasonable or discriminatory and burden or restrict U.S. commerce,” the Office of the U.S. Trade Representative (USTR) said in a statement.

“At President Trump’s direction, I am launching a Section 301 investigation into Brazil’s attacks on American social media companies as well as other unfair trading practices that harm American companies, workers, farmers, and technology innovators,” Greer said in the statement.

“USTR has detailed Brazil’s unfair trade practices that restrict the ability of U.S. exporters to access its market for decades in the annual National Trade Estimate (NTE) Report. After consulting with other government agencies, cleared advisers, and Congress, I have determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action.”

Brazil has officially responded to the announcement of Greer’s investigation, but after Trump revealed his plan to impose the 50 percent rate on July 9, Brazilian President Luiz Inácio Lula da Silva issued a statement on X saying that “any unilateral tariff increases will be addressed in accordance with Brazil’s Economic Reciprocity Law.”

Regarding Trump’s linking of the tariffs to Bolsonaro’s trial, Lula said, “Brazil is a sovereign nation with independent institutions.”

“The judicial proceedings against those responsible for planning the coup d'état fall exclusively under the jurisdiction of Brazil’s Judicial Branch and, as such, are not subject to any interference or threats that could compromise the independence of national institutions,” he said.

On July 14, Brazilian Vice President Geraldo Alckmin said Brazil had yet to receive a response from Washington to an offer it made in trade talks two months ago.

Among several letters Trump sent out on July 9 to U.S. trading partners was one issued to Brazil announcing the imposition of a 50 percent tariff on its exports.

Trump posted a copy of the letter on Truth Social that same day, in which he accused the nation of becoming an “international disgrace” because of the ongoing trial of Bolsonaro.

Bolsonaro is currently on trial for charges stemming from an alleged plot to overturn Brazil’s 2022 election results. Prosecutors allege that Bolsonaro and several associates were attempting a coup d’état, including an alleged plan to assassinate Lula.

He has denied any wrongdoing or involvement in the alleged plot.

In his letter, Trump called Bolsonaro’s trial a “witch hunt” and said it should end immediately.

The United States ran a $7.4 billion trade surplus with Brazil in 2024.

Jacob Burg contributed to this report.