Brazil's Bold Move Against US Tech Firms

In a significant escalation of trade tensions, Brazil is reportedly considering imposing a digital tax on US tech platforms. This move comes in response to President Donald Trump's anticipated tariffs on steel and aluminum imports. With Brazil exporting 48% of its total exports, amounting to $5.7 billion in 2024, to the US, the Brazilian government is seeking a balanced approach to avoid a full-blown trade war while ensuring its industrial sectors are protected.

Behind the Scenes: OECD Discussions

The proposal for a digital tax has been under discussion within the Organisation for Economic Co-operation and Development (OECD). This tax aims to shield Brazilian industries from cost increases and has garnered support from major industry representatives. Platforms like Amazon, Google, and Spotify could be directly impacted by this measure, as Brazil looks to safeguard its economic interests amidst rising trade tensions.