Brazil has called on the U.S. to respond to its trade proposal amid escalating tensions over newly announced U.S. tariffs on Brazilian goods. The Brazilian government expressed concern over the economic impact and urged for negotiation,

The probe will determine if Brazil's economic policies and practices in a number of areas are "unreasonable or discriminatory and burden or restrict US commerce," the Office of the US Trade Representative said in a statement.

The United States said Tuesday it is investigating Brazil's "unfair trading practices," which could provide a legal basis to justify imposing tariffs on South America's largest economy.