Trump Imposes Tariffs on Canada, Brazil and 60 Trading Partners

President Donald Trump launched a sweeping series of trade penalties against several major economies, including the imposition of a 50% ad valorem duty on specified Canadian products effective August 19. This action marks the first use of Section 338 of the Tariff Act of 1930 in over 95 years and targets alleged Canadian discrimination against U.S. dairy, alcohol, and motor vehicles. The duties cover nearly $20 billion in imports, including apparel and smartphones, and do not exempt USMCA-qualified goods.

Simultaneously, the U.S. implemented a 25% tariff on various Brazilian goods, including machinery and sugar, following an investigation into unfair trade practices. Some reports indicate Brazil faces a total rate of 50% due to its BRICS membership and treatment of U.S. tech firms. In contrast, Mexico secured a 90-day postponement on higher reciprocal levies, maintaining most goods at 25% until November 2026.

Trade envoy Jamieson Greer announced that as a temporary global levy expires this Friday, new duties between 10% and 12.5% will hit 60 trading partners over failures to combat forced labor. This includes a 10% rate for the European Union, United Kingdom, and Taiwan, and a 12.5% rate for China, India, and Japan. Additionally, the administration announced a 100% tariff on generic drugs starting August 2028, which will rise to 200% in 2029, though it will be cut to zero in August 2026 to encourage onshoring.

Canadian Prime Minister Mark Carney stated he is considering "all options" while agreeing to intensify discussions with Trump. Brazilian Vice President Geraldo Alckmin stated Brazil would seek a resolution through negotiations.