Trump Administration Initiates Trade Investigation of Brazil

The Trump administration initiated a trade investigation of Brazil on Tuesday, an action President Trump threatened last week as he criticized the country’s unfair trade practices and “witch hunt” against his political ally, former President Jair Bolsonaro.

The investigation will seek to determine whether certain policies and actions by the Brazilian government are unreasonable or have hurt U.S. businesses, the Office of the United States Trade Representative said in an announcement. The actions under investigation include the tariffs Brazil levies on American products, the country’s digital trade policies, the access it provides to its ethanol market and “anti-corruption interference,” among others, it said.

Mr. Trump said in a letter last week that he planned to impose a 50 percent tariff on all Brazilian imports, one of dozens of letters that he posted threatening steep tariffs that go into effect Aug. 1. But unlike other letters, the missive to Brazil complained about the country’s policies that discriminate against American tech companies and lambasted Brazil for its treatment of Mr. Bolsonaro, who is facing trial for attempting a coup.

In the letter, which was posted on social media, Mr. Trump said that the way Brazil had treated Mr. Bolsonaro was “an international disgrace,” and that the new tariffs would take effect on Aug. 1. He also promised to initiate the trade investigation.

Jamieson Greer, the U.S. trade representative, said Tuesday that he was beginning the investigation “into Brazil’s attacks on American social media companies as well as other unfair trading practices that harm American companies, workers, farmers and technology innovators.”

By targeting Brazil, Mr. Trump nonetheless has touched off a renewed debate about the extent of his tariff powers. The president has claimed vast authority to issue steep levies even without the express approval of Congress, as he looks to combat the nation’s trade deficit, address security concerns and, at times, meddle in another country’s politics.

“They’re treating President Bolsonaro very unfairly. He’s a good man,” Mr. Trump said recently, later adding: “I shouldn’t like him because he was very tough in negotiation, but he was also very honest. And I know the honest ones, and I know the crooked ones.”

Kevin Hassett, the director of the National Economic Council, explained on Sunday in an appearance on ABC’s “This Week” that the “president has been very frustrated with negotiations with Brazil and also with the actions of Brazil,” emphasizing a need to “put America first.”

Mr. Hassett later acknowledged that Mr. Trump settled on a 50 percent tariff — higher than the levies he has promised other countries beginning Aug. 1 — specifically because of Brazil’s treatment of Mr. Trump’s political ally. But Mr. Hassett said there were other reasons as well, citing the fact that Chinese sellers had sought to avert their own steep duties by selling through Brazil, in a tactic known as transshipping.

“If you look at an overall strategy, if you don’t have an overall strategy for this, then there’ll be transshipping and everything else, and you won’t achieve your objectives,” Mr. Hassett said.