The rift between Brazil and the United States since Donald Trump took office is becoming increasingly evident. In a new showdown between the two countries, the US Trade Representative, Jamieson Greer, has announced the opening of an investigation into Brazil for its trade practices and "attacks" on "US social media companies," as reported by Afp.
Trump imposed a 50% tariff on Brazilian imports last week, targeting the left-wing president Luiz Inácio Lula da Silva, in part as punishment for the trial of former president Jair Bolsonaro for attempted coup.
On Tuesday, Washington went further by fulfilling its threat to open an investigation into Brazil, as promised in the letter addressed to Lula announcing the new customs tariffs effective from August 1 if no agreement is reached before then.
"By order of President Trump, I am launching an investigation under Section 301 into Brazil's attacks on US social media companies, as well as other unfair trade practices that harm American companies, workers, farmers, and technology innovators," declared Trade Representative Greer, as quoted in a statement. "Brazil's tariff and non-tariff barriers deserve a thorough investigation and possibly corrective measures," Greer added.
Section 301 of the 1974 Trade Act addresses unfair foreign practices that affect US trade.
Washington will investigate digital trade and electronic payment services to examine if they harm US companies. It cites restrictions on providing services in the country and retaliations "for not censoring political speech" as examples.
This seems to refer to a judicial decision to block Rumble, a video-sharing platform popular among conservative groups, for refusing to suspend the account of a US resident user wanted for spreading misinformation.
The Trump administration will also investigate "unfair preferential tariffs" that, according to them, Brazil grants "to exports from certain globally competitive trading partners."
It also accuses Brazil of "inability" to "implement anti-corruption and transparency measures" and of apparently denying "protection and enforcement" of intellectual property rights.
Regarding ethanol, the Trump administration complains that Brazil has abandoned "its willingness to offer virtually duty-free treatment to US ethanol" and instead applies "substantially higher" tariffs than to others.
Finally, it asserts that "Brazil seems to not effectively enforce laws and regulations designed to stop illegal deforestation, undermining the competitiveness of US timber and agricultural producers."