Already, in one set of probes, US officials proposed new tariffs targeting dozens of trading partners for their alleged failures to act against forced labour.
In the case of Brazil, a senior US official took aim Wednesday at what Washington deemed as adverse actions on digital trade, alongside “unfair” competition linked to state-owned electronic payments system PIX, among other issues.
The US official said the door to negotiations remain open, although Washington wishes for its concerns to be resolved.
For example, the United States seeks to access preferential tariff treatment Brazil provided to partners like Mexico and India as well.
The official, however, rejected criticism that Section 301 probes were being used for political purposes.
While the Trump administration does not expect retaliation following Wednesday’s announcement, it warned that pushback could invite further US countermeasures.
For now, the United States has held constructive talks with Brazilian counterparts recently, the official said.
At a public hearing held by the USTR’s office in Washington this month, Brazilian conservative presidential hopeful Flavio Bolsonaro urged the United States against imposing the new tariffs.
The eldest son of Brazil’s former right-wing president Jair Bolsonaro argued that new duties would benefit his political rival, President Luiz Inacio Lula da Silva.
The pair are key rivals in the October presidential ballot.
Dozens of other participants testified at the two days of public hearings as well.
Last year, the Trump administration hit Brazil with sharp tariffs over the coup trial against Jair Bolsonaro, who is now serving a 27-year sentence.
Many of the duties were rolled back after talks between both sides, in a win for Lula.
