Trump hikes tariffs for Canada and Brazil
US president Donald Trump has reinstated his global tariffs, increasing the tax paid by countries including Canada and Brazil, while decreasing others.
The move follows news that the US struck a deal with the EU to halve the latter’s tariff to 15%.
An executive order on the White House website sets out the tariffs for more than 90 countries.
Some countries have benefited from a reduction since Trump first announced his global plan in April. For instance, Japan’s tariff has been lowered to 15% from 24%, while Lesotho has been slashed from 50% to 15%. India’s tariff, meanwhile, has gone from 26% to 25%.
South Korea’s has fallen from 25% to 15% – news that will be welcomed by the nation’s soju producers, who see the US as an increasingly important market.
The UK’s rate has remained at the baseline 10%.
These tariffs will take place from 7 August.
Canada
Notable exceptions from the list include neighbouring Canada and Mexico, as well as Brazil.
Canada’s tariffs were addressed in a separate executive order, with the US president increasing the duty from 25% to 35% from today (1 August).
The order states: “Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the president’s actions to address this unusual and extraordinary threat to the United States.”
Any goods that qualify for preferential tariff treatment under the US-Mexico-Canada Agreement (USMCA) will continue to be exempt. Any goods that are transshipped to evade the tariff will be subject to an increased duty of 40%.
The USMCA covers spirits made according to each nation’s rules of origin, meaning Bourbon, Tequila and Canadian whisky are excluded from tariffs.
Despite this, sales of American spirits plummeted by 66% in Canada following Trump’s initial tariffs. This was due to Canadian liquor stores pulling US-made products in retaliation.
In a statement on X, Canadian prime minister Mark Carney expressed his disappointment over the move, but added that most Canadian exports remain tariff-free.
He added: “While we will continue to negotiate with the US on our trading relationship, the Canadian government is laser-focused on what we can control: building Canada strong.
“The federal government, provinces and territories are working together to cut down trade barriers to build one Canadian economy.
“We are developing a series of major nation-building projects with provincial, territorial, and Indigenous partners. Together, these initiatives have the potential to catalyse over half a trillion dollars of new investments in Canada.
“Canadians will be our own best customer, creating more well-paying careers at home, as we strengthen and diversify our trading partnerships throughout the world. We can give ourselves more than any foreign government can ever take away by building with Canadian workers and by using Canadian resources to benefit all Canadians.”
Brazil
Meanwhile, Brazil – the home of cachaça – was the subject of a separate executive order, which brought the nation’s tariff up to 50%.
The order describes the situation as a ‘national emergency’ due to “the government of Brazil’s unusual and extraordinary policies and actions harming US companies, the free speech rights of US persons, US foreign policy, and the US economy.”
The country was initially given the lowest tariff rate of 10%.
It is believed the increase is reflective of a growing feud between the two nations, fuelled by Trump’s support of former Brazilian president Jair Bolsonaro. Bolsonaro is currently facing trial over an alleged coup.
Mexico and China
Mexican president Claudia Sheinbaum confirmed on X that the US has extended its tariff pause for a further 90 days, with negotiations to follow.
The country was due to be subject to a 30% tariff, which was announced in July. This is the same tariff that the EU was threatened with, which it has successfully negotiated down to 15%.
China was also omitted from the executive order. It is believed negotiations between the two nations are still ongoing. China was excluded from Trump’s pause, during which time he declared a 125% tariff on the nation.
Related news
Trump hits Mexico and EU with 30% tariffs
