United States throws unexpected trade blow at Brazil, igniting worldwide tension
The recent decision by the US government to investigate Brazil for alleged irregular trade practices has caused quite a stir. Directly driven by the Trump administration, this move adds to a series of actions that could transform the trade relationship between both countries, even though the US does not have a deficit with its South American partner. What’s behind this offensive?
## An investigation that goes beyond trade
The US government has announced a formal investigation to determine if certain policies negatively affect American companies, workers, and exporters. This includes sensitive issues such as digital trade, electronic payment services, protection of intellectual property, and interference in digital freedom of expression.
According to an official statement, the investigation will determine if Brazil has implemented “unreasonable or discriminatory” measures that unfairly restrict trade. Among the concerns cited are barriers to US ethanol access and the issue of illegal deforestation.
## Political tensions fueling commercial flames
This new conflict is not limited to the economic realm. Behind the US measure, there is a political backdrop marked by the prosecution of former Brazilian president Jair Bolsonaro, who has a close relationship with Donald Trump. The US government has expressed concern over what they see as a “political persecution” of Bolsonaro, accused of trying to overturn the results of the 2022 elections in favor of current president Luiz Inácio Lula da Silva.
This conflict has been fueled by a letter sent by Trump to Lula, threatening a 50% tariff on Brazilian products, a departure from the usual pattern based on trade deficits. In this case, the pressure aims to directly influence the Brazilian government’s internal decisions.
## A surplus complicating the US discourse
Unlike other trade disputes where the US relies on negative imbalances, the balance with Brazil shows a surplus in favor of Washington of $6.8 billion in the last year. In fact, the US has not had a trade deficit with Brazil in almost two decades.
This data weakens the traditional arguments used by the Trump administration to justify sanctions, leading to speculation that the real goal could be more political than economic, aiming to strengthen the global position of the dollar and curb the advancement of alliances like BRICS, where Brazil plays a leading role.
Trump has even proposed a general 10% tax on imports from BRICS member countries, arguing that these nations pose a threat to the US dollar’s hegemony.
