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Home » Global Trade & Economics » Trump Admin Opens Probe into Brazil Over Alleged 'Unfair' Trade Practices

Trump Admin Opens Probe into Brazil Over Alleged 'Unfair' Trade Practices

Stacks of multi-colored shipping containers, with three stacked on top of each other that each bear the green, yellow and blue imagery of the Brazilian flag
Photo: iStock / alexsi
July 16, 2025
SupplyChainBrain

The U.S. has launched a probe "unfair trading practices" it alleges are being enacted by Brazil, as President Donald Trump continues to pressurize the South American nation to drop its legal case against former President Jair Bolsonaro.

In a July 15 release, the U.S. Trade Representative (USTR) said that the investigation will span digital trade and electronic payment services, preferential tariffs, anti-corruption interference, intellectual property protection and illegal deforestation.

"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," said USTR ambassador Jamieson Greer.

In a July 11 letter posted to his Truth Social platform, Trump threatened to hit Brazil with 50% tariffs starting on August 1, stating that the country's so-called "witch hunt" against Bolsonaro needs to end "immediately." But, Trump's pressure appears to have backfired, The Guardian reports, having prompted a wave of public outrage against Trump and Bolsonaro across the country. This has given a significant bump in polling for Brazil's President Luiz Inacio Lula da Silva, increasing his chances of winning a fourth term in presidential elections in 2026.

Bolsonaro's case is currently awaiting a ruling from Brazil's Supreme Court, where he stands accused of illegally attempting to overturn the results of Brazil's 2022 presidential election. Prosecutors allege that he and seven others sought to "violently overthrow the democratic order," after a mob of his supporters attacked the country's congressional building, presidential palace, and Supreme Court building just days after Lula was sworn in as president. 

Bolsonaro has already been banned from running for public office again, and if he's convicted by the Supreme Court, he could face up to 43 years in prison.

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