AsianFin -- The Office of the U.S. Trade Representative (USTR) on Tuesday announced a formal investigation into Brazil’s trade policies, citing potential barriers to American exports and unfair practices across a range of sectors.

The probe, launched under Section 301 of the 1974 Trade Act, comes just a week after President Donald Trump threatened to impose a 50% tariff on Brazilian goods. It will examine Brazil’s conduct in areas including digital trade and electronic payments, preferential tariff schemes, anti-corruption enforcement, intellectual property rights, ethanol market access, and environmental regulations related to deforestation, according to a USTR fact sheet.

“I have determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action,” U.S. Trade Representative Jamieson Greer said in a statement.

The Section 301 mechanism allows Washington to take retaliatory trade actions if it concludes that a foreign country is engaging in discriminatory or unreasonable practices that harm U.S. commerce. The move could further strain economic relations between the two nations at a time of heightened global trade uncertainty.