US President Donald Trump is escalating his trade war, threatening tariffs on key sectors including copper and Brazil over issues unrelated to trade. The latest moves come despite efforts to ease uncertainty through deals with major trading partners.
Tariffs on Canadian goods are set to rise to 35% as of August 1, sparking concerns about the impact on trade talks aimed at a July 21 deadline. Trump cited Canada’s “failure to stop drugs from pouring into our Country” and its alleged policies hindering US interests as reasons for the threat.
Brazil is also under threat, with potential tariffs ranging up to 50%. The move is seen as punishment for the country’s treatment of former president Jair Bolsonaro, who has been a Trump supporter.
Economists warn that the game of tariffs never ends, and businesses are struggling to understand the ever-changing landscape. Despite this uncertainty, Wall Street appears to be taking the news in stride.
The US trade policy is now in a liminal state, with high tariffs on major trading partners looming but seemingly just out of reach. Business leaders are yearning for clarity on where tariffs will settle, as the lack of certainty grows with each shifting deadline.
Treasury Secretary Scott Bessent confirmed that new trade announcements are coming in the next 48 hours, while Trump posted on Truth Social about delivering tariff letters and proposals starting Monday. The latest timeline includes July 21, August 1, and August 12, with deals with key partners uncertain.
The prospect of higher import taxes remains, despite potential tariff deals announced in the days ahead. Economists warn that near-term announcements may not be comprehensive or permanent, leaving businesses uncertain about the long-term impact of the trade war.
Source: https://www.axios.com/2025/07/11/trump-tariffs-canada-brazil-bolsonaro