Trump launches probe into Brazil's 'unfair' trade practices
It will include the Brazilian government's policies "related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption interference", a statement from the US trade representative said.
The investigation seeks to determine whether they are "unreasonable or discriminatory and burden or restrict US commerce."
Last week, US President Donald Trump urged Brazilian authorities to end their prosecution of the country's former President Jair Bolsonaro, accusing them of carrying out a "witch hunt".
US Trade Representative Jamieson Greer said the probe was being launched at Trump's direction "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".
"I have determined that Brazil's tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action," he said.
Greer accused Brazil of disadvantaging American exports by offering lower tariffs to other trade partners.
Investigators will look into alleged attempts by Brazil to penalise US companies involved in digital trade and services for not censoring political speech.
The office also alleged a lack of adequate enforcement of intellectual property rights, harming US workers "whose livelihoods are tied to America's innovation- and creativity-driven sectors."
Trump first threatened the investigation in a letter to Brazil's president, Luiz Inácio Lula da Silva, last week.
In the same letter, the US president announced a 50% tariff on Brazil starting on 1 August. Lula said in response that Brazil would match any increase in tariffs.
Last year, trade between the two countries was worth $90bn (£67.2bn).
Washington reported a trade surplus with Brazil of $7.4bn in 2024, a 33% percent increase on the previous year. — BBC
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Arabiya
6 minutes ago
- Al Arabiya
US producer prices unchanged with wholesale inflation remaining under control
US wholesale inflation cooled last month despite worries that President Donald Trump's tariffs would push prices higher for goods before they reach consumers. The Labor Department reported Wednesday that its producer price index was unchanged last month from May after rising 0.3 percent the previous month. June wholesale prices were up 2.3 percent from a year earlier–smallest year-over-year gain since September. Both measures came in below what economists had expected. Excluding volatile food and energy prices–so called core producer prices–were also unchanged from May and up 2.6 percent from June 2024. The report on wholesale inflation came a day after the Labor Department reported that consumer prices last month rose 2.7 percent from June 2024–the biggest year-over-year gain since February–as Trump's sweeping tariffs pushed up the cost of everything from groceries to appliances. Consumer prices and producers prices do not always move in tandem. The producer price report showed that wholesale goods prices rose 0.3 percent from May–biggest month-over-month increase since February. Steel and iron prices rose Wholesale prices can offer an early look at where consumer inflation might be headed. Economists also watch it because some of its components–notably measures of health care and financial services–flow into the Federal Reserve's preferred inflation gauge–the personal consumption expenditures or PCE index. Inflation began to flare up for the first time in decades in 2021 as the economy roared back with unexpected strength from COVID-19 lockdowns. That prompted the Fed to raise its benchmark interest rate 11 times in 2022 and 2023. The higher borrowing costs helped bring inflation down from the peaks it reached in 2022 and last year–the Fed felt comfortable enough with the progress to cut rates three times. But it has turned cautious this year while it waits to see the inflationary impact of Trump's trade policies. Trump has aggressively stepped up pressure on the Fed to cut rates–a move that threatens the central bank's independence.
Arab News
36 minutes ago
- Arab News
Transactional diplomacy versus the international order
Cross-border conflicts lead not only to deaths, injuries and other casualties, but can also have long-lasting economic impacts sparking domestic unrest. The key to preventing both outcomes is what type of diplomacy countries pursue and over what timeframe. Transactional diplomacy prioritizes achieving 'deals' over adherence to 'rules-based' approaches grounded in international principles and humanitarian values. The term gained prominence during Donald Trump's first presidential term and has continued into his current term. This form of diplomacy is gaining ground, including within the EU, contributing to the rise of populism, xenophobia and nationalism at the domestic level and increasing the prospect for regional and global conflicts. Transactional diplomacy can be shortsighted. This can be seen by comparing the chaotic impact on global trade of the 'reciprocal tariffs' announced by Trump in April with the gradual, yet consistent, progress made by the World Trade Organization since its inception in 1995, which has advanced globalization through multilateral negotiations. The consequences of the increasingly fluid international order are especially evident in the Middle East and North Africa region. In addition to the effects of regional instability, the majority of Arab countries are facing economic stagnation and increasing poverty. According to a report published by the World Bank last month, the poverty rate in MENA has more than doubled to an estimated 9.4 percent this year, compared to only 4 percent in 2010. In the past year alone, an additional 11 million people have fallen below the poverty line. The rise in poverty in MENA cannot be explained by global crises, such as the 2008 financial meltdown, the COVID-19 pandemic and the 2022 war in Ukraine. These crises have also affected the rest of the world, but the current global poverty rate of 9.9 percent is less than half the 21 percent recorded in 2010. And the typically disruptive energy price fluctuations tend to have a neutral impact on the MENA region as a whole, which comprises both energy-exporting and energy-importing countries. The consequences of the increasingly fluid international order are especially evident in the Middle East Dr. Zafiris Tzannatos An obvious culprit in the region is prolonged conflict and fragility. In this context, Arab nations may ask themselves what kind of diplomacy can halt and reverse their economic and humanitarian descent. Should they adopt a transactional approach or one grounded in principles, or some balance between the two? The question is timely, following Israel's airstrikes on Iran last month. The strikes, considered to be 'preemptive' by Israel, are based on 30-year-old statements (also repeated at the UN more recently) by Prime Minister Benjamin Netanyahu, then an MP, that Iran could fulfill its nuclear ambitions in 'a matter of months, or even weeks' without an external intervention. Yet, despite decades of warnings that Iran is on the brink of developing nuclear weapons, no credible evidence supports this claim. As recently as March, US intelligence chief Tulsi Gabbard testified before the Senate that Iran was not actively pursuing a nuclear bomb. The International Atomic Energy Agency backed this assessment in May, reporting no indication of an undeclared weapons program, a view later repeated by Director General Rafael Grossi. Nevertheless, Israel's strikes have been endorsed by German Chancellor Friedrich Merz, who stated that Israel is doing 'the dirty work for all of us' in Iran. His assessment was in line with those of the representatives of the G7 countries that met in Canada when the strikes started. Soon after, the US conducted additional strikes on nuclear facilities in Iran, though a ceasefire was reached two days later, with hopes that it will hold permanently. Proxy wars may serve the interests of powerful nations, but the people caught in their crossfire pay the ultimate price. The Iran-Iraq War of 1980 to 1988 is a case in point. The war devastated both countries. Then Iraq fell out of favor and, in 2003, a US-led coalition, loudly seconded by the UK, invaded it, citing the presence of nonexistent nuclear, biological and chemical weapons. Wars exert consequences beyond the warring parties and military targets, often impacting neighboring countries even if they are not involved. The economic effects of the war in Gaza illustrate this clearly. Though both Egypt (in 1979) and Jordan (in 1994) signed peace treaties with Israel, their economies have been adversely affected by lower tourism revenues, higher energy insecurity, increased transport costs and slower economic growth. Following the recent strikes in Iran, both Egypt and Jordan, among others, immediately experienced a surge in tourism cancellations, with increases in fiscal deficits, public debt and unemployment likely to pose significant risks to their macroeconomic stability and social conditions if uncertainty continues and conflict resumes. These economic risks are not confined to MENA. A prolonged conflict could rattle global markets, spiking shipping costs, energy prices, inflation and interest rates, and unsettling financial systems. Stock volatility, investor flight and exchange rate pressures may follow, undermining global economic stability. Wars exert consequences beyond the warring parties and military targets, often impacting neighboring countries Dr. Zafiris Tzannatos Yet some Western leaders still see war as an economic stimulus. UK Prime Minister Keir Starmer recently told Parliament that increased defense spending would 'restore growth,' citing NATO commitments to the Ukraine war. While defense industries may benefit under such transactional thinking, the toll of wars on human lives, livelihoods and long-term economic growth outweighs their short-term gains. Israel's diplomacy, exemplified by the normalization of relations through the Abraham Accords with the UAE, Bahrain, Morocco and Sudan in 2020, can be characterized as transactional in nature. Yet, a lesson can be learned from the alignment of such diplomacy with Israel's long-term objectives to consolidate control over and eventually annex the Occupied Territories. Arab states might take a similar approach, not by abandoning principles but by strategically aligning short-term deals with the long-term goal of peace and prosperity in their countries. A transactional approach coupled with economic cooperation can de-escalate tensions as long as it adheres to principles. For example, Saudi Arabia has refrained from joining the Abraham Accords, maintaining that normalization with Israel must be contingent on a credible and irreversible path toward the establishment of a sovereign Palestinian state along the pre-1967 borders, with East Jerusalem as its capital, in line with the two-state solution. In conclusion, the Arab countries are once again at a crossroads. In addition to the loss of lives, renewed conflict risks deepening their economic woes. In its ongoing stabilization program in a Middle East country, the International Monetary Fund flagged 'widespread domestic protests and violence' driven by poverty and unemployment as a 'high risk' factor that could jeopardize the success of the program. Arab states should unite and develop a nuanced strategy that blends pragmatic deal-making with a principled vision for peace and sustainable prosperity. The stakes are not just regional. The world, too, may pay the price of inaction and miscalculation.
Saudi Gazette
an hour ago
- Saudi Gazette
Striking trade deal with US was an ‘extraordinary struggle,' Indonesia says
WASHINGTON — President Donald Trump said Tuesday the United States has reached a trade agreement with Indonesia, after negotiations Jakarta described as an 'extraordinary struggle.' The deal will see the US impose a 19% tariff on Indonesia's exports, a reduction from the 32% Trump had initially threatened to impose on the country. After first announcing the agreement on Truth Social, Trump told reporters that it calls for Indonesia to not charge any tariffs on American exports. Trump also said Indonesia committed to buying '$15 Billion in US Energy, $4.5 Billion in American Agricultural Products, and 50 Boeing Jets, mny of them 777's.' On Wednesday afternoon, Indonesia's government confirmed the deal, saying President Prabowo Subianto had negotiated it directly with Trump over the phone. 'This is an extraordinary struggle by our negotiating team led by the Coordinating Minister for Economic Affairs,' Hasan Nasbi, the Indonesian president's spokesperson, told Reuters. Prabowo was expected to reveal more detail later on Wednesday. In a post on Instagram the Indonesian president wrote the two sides 'agreed and concluded to take trade relations between Indonesia and the United States into a new era of mutual benefit between our two great nations.' Before departing the White House to speak at a summit in Pittsburgh, Trump said Indonesia is 'known for high-quality copper, which we'll be using.' That may mean that copper from the country could face lower tariffs, or no tariffs, if Trump proceeds with his threat to levy a 50% tax across all copper imports on August 1. While Indonesia shipped $20 million worth of copper to the US last year, according to US Commerce Department data, that's far behind top suppliers Chile and Canada, which sent $6 billion and $4 billion worth of the metal to the US last year. 'No tariffs there; they pay tariffs here. Switching the asymmetry our way,' US Commerce Secretary Howard Lutnick said in a CNBC interview on Tuesday. Trump said India is 'working along the same line' with regard to securing a trade agreement. In April, Trump briefly imposed a 32% tariff on goods from the country before pausing so-called 'reciprocal' tariffs. Countries that were due to face those tariffs have been charged a minimum 10% tariff for the past three months. That's due to end on August 1. 'Great deal, for everybody, just made with Indonesia. I dealt directly with with their highly respected President,' Trump wrote on his social media platform Tuesday morning. 'DETAILS TO FOLLOW!!!' This marks Trump's fourth trade agreement announcement in three months. He had previously promised dozens of deals with US trading partners over that time frame, but that has proven tough to reach. One of the four agreements he previously announced was with Vietnam earlier this month, similarly posting on Truth Social. But the administration has yet to announce any more information on that agreement. Trump's volatile trade policy has paralyzed many businesses. Some fear that new orders they place for products manufactured overseas could be tariffed at dramatically higher rates given Trump can — at the flick of a switch — change rates charged on a country's exports. Trump has said companies can avoid such headaches by moving production to the United States. But it's not so simple in practice: Businesses may not only encounter difficulty finding the right workers, but it could take years — and many millions of dollars — before manufacturing facilities are up and running. Then, once production is moved to the US, costs could increase, leading to higher prices for American consumers. Representatives from the Indonesian government did not immediately respond to CNN's request for comment. Indonesia is America's 23rd top trading partner, US Commerce Department data from last year shows. The United States imported $28 billion worth of merchandise from there last year. Apparel and footwear were the top two goods Americans bought. Meanwhile, the US exported $10 billion worth of goods there last year. Oilseeds and grain as well as oil and gas were the top two exports. — CNN
