U.S. Investigates Brazil's Trade Practices Amid High Tariff Threat

The U.S. has launched an investigation into Brazil's trading practices, following President Trump's threat of a 50% tariff on imports from Brazil. The USTR's probe focuses on discrimination against U.S. commerce, potentially leading to responsive action. Brazil's tariff policies and associated political factors are under scrutiny.

The U.S. Trade Representative is scrutinizing Brazil's trading practices after President Trump threatened a steep 50% tariff on Brazil's imports, marking heightened tensions amid Trump's broader trade war strategy.

The investigation will focus on Brazil's treatment of digital trade and tariff policies that potentially burden U.S. businesses, as well as potential discrimination by Brazil against U.S. commerce. U.S. companies, particularly in social media and technology, claim they are adversely affected by these practices.

While Brazil has yet to respond formally to the investigation, the USTR highlights Brazil's preferential tariffs for other countries and its alleged failure to enforce anti-corruption measures, posing challenges to U.S. industries, including those in timber and ethanol exports.

(With inputs from agencies.)