US Trade Representative Jamieson Greer announced the launch of a Section 301 investigation into Brazil’s unfair trade practices, following President Donald Trump’s threat of a 50% tariff on imports from Brazil.

The investigation will examine Brazil’s digital trade policies, preferential tariffs, and other measures to determine if they are unreasonable or discriminatory and restrict US commerce.

Greer stated that Brazil’s tariff and non-tariff barriers warrant a detailed investigation and possibly retaliatory measures. Trump’s 50% tariff, effective August 1, significantly exceeds the previously proposed 10%.