Earlier quoted context omitted.
Brazil isn't part of the Visa Waiver program and felt that its citizens were being treated unreasonably. Thus, they began being rude to Americans. (IIRC) Kind of an asshole move, but highly entertaining to watch from the outside.
Brazil has a well-known tit-for-tat policy in foreign matters. They will apply to a country's citizens whatever policy that country applies to Brazilians. So Americans were singled out because they singled out Brazilians. It's called having balls.
What the politicians should be doing is saying, "we want to be part of Vfw too, what can we do to get there?" and not, "the US gov't don't like us, so we won't like them!" Instead of trying to work closer together, this policy only makes the divide bigger. I was ready to go to Brazil for a vacation, but chose South Africa instead because of this silliness.
To an American, not going to Brazil has very little impact on them. They'll take their money and go elsewhere.