Brazil's Potential Retaliation Against US Tech Firms

In response to President Donald Trump's anticipated tariffs on steel and aluminum imports, Brazil is considering imposing a digital tax on US technology platforms. This move could significantly impact major companies like Amazon, Google, and Spotify, as reported by Folha de S.Paulo.

With Brazil exporting 48% of its total exports to the US, amounting to $5.7 billion in 2024, the potential tariffs could directly affect the Brazilian economy. The Brazilian government, led by President Luiz Inacio Lula da Silva, is keen on avoiding a trade war but recognizes the necessity of a countermeasure.

OECD Discussions and Industry Support

The proposed digital tax, currently under discussion within the Organisation for Economic Co-operation and Development (OECD), aims to protect Brazilian industrial sectors from cost increases. This initiative has garnered support from major industry representatives, highlighting the importance of safeguarding local industries against foreign trade policies.