BRASILIA -- The Brazilian government has formally protested the US decision to impose 50 percent import tariffs on all Brazilian exports, effective Aug 1, warning of serious economic consequences and a strain on bilateral relations.

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.

Brazilian President Luiz Inacio Lula da Silva fiercely criticized the United States on Thursday over new tariffs set by President Donald Trump, calling the move unacceptable blackmail and vowing to defend

Following Trump’s 50% tariff hike on Brazilian goods, a decree creates fast-track process for countermeasures against countries targeting Brazilian interests.

Tensions between the United States and Brazil have suddenly burst open. Brazil’s president promised to reciprocate against President Trump’s tariffs.