US pressures Brazil against tax on digital services

During a hearing in the House of Representatives, Bessent mentioned Brazil by name when commenting on Washington’s strategy to confront initiatives that, in the US’ view, disproportionately affect American technology companies.

“We are pushing, whether in Europe, Brazil, India or Canada, against these taxes on digital services,” he declared.

According to the secretary, the US defends the interests of its technology companies in trade negotiations with other countries. “We have the largest technology and innovation ecosystem in the world, and they cannot take advantage of our companies,” he said.

The declaration comes at the same time that the US announced possible new tariffs on imports originating in Brazil.

On Monday (1st), the Office of the United States Trade Representative (USTR) proposed a 25% surcharge on a strategic list of products imported from the country, scheduled to begin on July 15th.

On Wednesday (3), after the conclusion of another investigation, the USTR proposed the application of tariffs of 12.5% ​​on products from Brazil and other countries, due to failures to combat the entry into the American market of goods produced with forced labor.

The measure will be debated at a public hearing on July 7, in Washington. Only after this stage will the American government decide whether to apply, change or abandon the proposed tariff.