U.S. formally opens tariff probe into Brazil... The Trump administration has launched a formal Section 301 investigation into Brazil’s trade practices, raising the threat of sweeping new tariffs and intensifying bilateral tensions. The probe, targets Brazil’s regulatory actions against American tech firms and broader policies that Washington says discriminate against U.S. companies and products.
The investigation will examine a wide array of Brazilian measures, including: digital trade restrictions, ethanol market access, intellectual property enforcement, judicial interference, tariff and non-tariff barriers and environmental policies. President Donald Trump announced the U.S. will impose a 50% tariff on all Brazilian imports starting Aug. 1, up from the prior 10%.
A notice to be published in the Federal Register lays out the issues prompting the investigation, including on ethanol that the country continues to apply a tariff on imports of U.S. ethanol that is currently at 18%. The U.S. Trade Representative noted that U.S. ethanol exports to Brazil peaked at $761 million in 2018 but fell to just $53 million in 2024, “suggesting that U.S. ethanol producers are at a significant disadvantage under the current tariff system.” Link to pre-publication notice.
USTR also said that deforestation in Brazil had increased output of soybeans and beef that compete against the U.S. on the global market, putting US producers at a disadvantage. The U.S. maintains the timber is being cleared illegally and that forced labor is being used for the harvest of the timber, resulting in violations of U.S. law and means the products can be sold into the U.S. market at lower prices, giving Brazil an unfair advantage over legally harvested U.S. timber.
The investigation could last several months and includes a public comment period. If Brazil is found to be harming U.S. commerce, the USTR could impose long-term tariffs or restrictions. Observers say further escalation is possible if no negotiated solution is reached.
Brazilian meatpackers reconsider U.S. beef shipments... Brazilian meatpackers are reassessing beef exports to the U.S. after President Donald Trump announced a 50% tariff on Brazilian beef last week, according to the president of the industry group ABIEC. “New shipments are under analysis by the private sector due to the increase in tariffs,” he said. The tariff shock has rippled through Brazil’s cattle market, with slaughterhouses pulling back on animal purchases amid growing uncertainty.
The U.S. is Brazil’s second-largest beef market behind China, and accounts for roughly 23% of Brazilian beef exports. Companies like Minerva, which generates about 5% of its revenue from U.S. beef sales, have already begun redirecting production or halting exports altogether ahead of the Aug. 1 tariff implementation.
Trump cuts Indonesia tariff to 19% in new deal... The Trump administration finalized a trade agreement with Indonesia, reducing the proposed tariff rate from 32% to 19% in exchange for $15 billion in U.S. energy purchases, $4.5 billion in agricultural imports, and an order for 50 Boeing jets. Trump also signaled that countries not negotiating tailored rates — mostly smaller U.S. trading partners — would likely face a flat tariff of “probably a little over 10%.”
Commerce Secretary Howard Lutnick said the nations with goods being taxed at these rates would be in Africa and the Caribbean — places that generally do relatively modest levels of trade with the U.S.
Rescissions advance in Senate... The Senate narrowly advanced President Donald Trump’s $9 billion rescissions package late Tuesday, with Vice President JD Vance breaking a 50-50 tie. The vote sets the stage for a high-stakes “vote-a-rama” on amendments today, with a tight House deadline looming later this week.
Three Republicans — Susan Collins, Mitch McConnell, and Lisa Murkowski — joined Democrats in opposing the procedural motion, citing concerns over federal program cuts. Senator Mike Rounds flipped to support the bill after securing a $10 million redirection to tribal radio stations.
The package proposes $1.1 billion in cuts to the Corporation for Public Broadcasting and trims foreign aid by $7.9 billion, though $400 million for PEPFAR was restored following internal GOP pushback.
The bill moves under special budget rules that avoid a filibuster, requiring only a simple majority. But if any amendments are adopted, it must return to the House, giving lawmakers little time before Friday’s deadline.
Republican divisions remain sharp, with Trump using social media to pressure dissenters and Sen. Thom Tillis (R-N.C.) warning the administration not to “mess up” the process. Today’s debate and amendments could reshape the final outcome — and determine whether rescission becomes a viable budget tool or a political liability.
Bipartisan immigration play in House faces a political reset... A bipartisan immigration plan is back in the spotlight as Reps. María Elvira Salazar (R-Fla.) and Veronica Escobar (D-Texas) prepare to reintroduce sweeping legislation that pairs steep penalties and border enforcement with a legal status pathway for undocumented immigrants. The move comes as illegal border crossings hit record lows, and the Trump administration intensifies its deportation agenda using $150 billion in new GOP-backed enforcement funds. The proposed bill — a revamped version of Salazar’s long-standing “Dignity Act "— includes:
- Border security measures: new wall construction, mandatory e-Verify, detention at “humanitarian campuses,” and accelerated asylum decisions.
- Legal status pathway: undocumented immigrants could pay $7,000 in restitution and meet other criteria to pursue legal status—though not citizenship or access to federal benefits.
While some Republicans remain focused solely on tightening asylum rules and border controls, Salazar and Escobar are betting that the current lull in illegal crossings could open the door to broader reform negotiations after years of stalemate.
USDA ends pandemic-era RFBC program... USDA Secretary Brooke Rollins announced the termination of the Regional Food Business Centers (RFBC) program, a Covid-era initiative launched under President Biden with temporary congressional funding. Calling the program “unsustainable” and inconsistent with “congressional intent,” Rollins said USDA will honor more than 450 existing grants but will not extend the program beyond current commitments.
“The Biden Administration created multiple, massive programs without any long-term way to finance them,” Rollins said, adding that USDA will redirect any unspent funds “to better support American agriculture.”
Of the 12 original RFBCs, only eight issued Business Builder grants. Those that have already made awards can continue managing them through May 2026. Four RFBCs — Great Lakes Midwest, Southeast, Delta, and Islands and Remote Areas — will be fully terminated for not having awarded any grants to date.