On the 15th (local time), at the Ministry of Development, Industry and Commerce in Brasília, Brazil, Vice President and Minister of Development, Industry, and Foreign Trade Geraldo Alckmin attended a meeting with representatives from the industry sector. Brazilian President Luiz Inácio Lula da Silva has formed an inter-ministerial committee to respond to the U.S. government’s 50% tariff measure. The committee held its first meeting with representatives from the industrial and agricultural sectors on this day.
U.S. President Donald Trump announced a 50% tariff imposition against the Brazilian government of President Lula and ordered an investigation into potential unfair trade practices under Section 301 of the Trade Act.
The U.S. Trade Representative (USTR) stated on its website on the 15th (local time) that it has initiated an investigation into Brazil, based on Section 301 of the Trade Act of 1974.
The U.S. authorities raised issues concerning Brazil’s actions, policies, and practices related to “digital trade and electronic payment services,” “unfair and discriminatory tariffs,” “anti-corruption,” “intellectual property rights protection,” “ethanol market access,” and “illegal deforestation.”
Regarding digital trade, the USTR argued that Brazil’s policy of not censoring political comments and limiting services provided by U.S. companies in Brazil could weaken the competitiveness of these companies.
This tension seems related to recent conflicts between the two countries, triggered by a ruling from Brazil’s Federal Supreme Court (STF) that imposed legal responsibility on social media platforms for certain content. This included a case where the platform X was fined 28.6 million reais (approximately 6.9 billion won) for failing to comply with an order to delete posts involved in the spread of false information last year.
Brazil had previously witnessed a major protest in January 2023, led by supporters of former President Jair Bolsonaro against the election results, with numerous social media posts alleging “election fraud.” Bolsonaro regarded Trump as a “political role model.”
The USTR also highlighted concerns that “lower tariffs applied to the exports of certain global competitors diminish the competitiveness of U.S. products,” as well as issues regarding “corruption and bribery,” lack of adequate protection for “intellectual property rights,” high tariffs on U.S. ethanol products, and insufficient measures to curb “illegal deforestation” as practices restricting U.S. commercial activities.
USTR Representative Jamieson Greer said that following President Trump’s directive, investigations into unfair trade practices, including attacks on U.S. social media companies and harm to U.S. workers and farmers, would proceed. He noted that thorough review and potential responses were deemed necessary after consulting with other government agencies, advisory bodies, and Congress.
Section 301 of the U.S. Trade Act stipulates that if a foreign government engages in discriminatory practices and no corrective measures are found, the U.S. may impose tariffs or import restrictions. It is considered a symbol of protectionism and provides a legal basis for the U.S. to impose extensive sanctions on counterparties during trade processes.
This action comes as Brazil announced retaliatory tariffs in response to the U.S.’s declaration of a 50% tariff imposition. President Lula signed an executive order stating that Brazil could impose an equivalent 50% tariff if the U.S. enacts its “tariff bomb.”
Brazilian Vice President and Minister of Industry and Commerce Geraldo Alckmin commented after the trade meeting, stating, “The industry is asking the U.S. to postpone the tariff implementation date, scheduled for August 1, by up to 90 days.” He added, “The government does not plan to request a delay in the U.S. tariff initiation date and will resolve the issue by the 31st.”