Brazil on Wednesday urged the U.S. to respond to a trade proposal submitted in May, reaffirming its openness to a "mutually acceptable" deal after U.S. President Donald Trump announced a 50% tariff on Brazilian goods starting in August.

The U.S. Trade Representative (USTR) has launched Section 301 investigation against what it said are potentially unfair trade practices used by Brazil, just days after U.S. President Donald Trump threatened 50 percent tariffs on the country over claims it was treating former President Jair Bolsonaro unfairly.

The fight is rooted in years of political history between President Trump and the last two presidents of Brazil.

National Economic Council Director Kevin Hassett defended Donald Trump’s newly unveiled 50% tariff against Brazil on ABC News' "This Week."

Nobel Prize-winning economist Paul Krugman believes tariffs President Trump has threatened to impose on countries, including Mexico and Brazil, are here to stay and will cost U.S. consumers.

Facing growing chaos, the European Union and numerous other countries are seeking to forge a global trading nexus that is less vulnerable to American tariffs.