Trade war keeps heating up: U.S. sets new tariffs on more than 40 countries overnight
Just as the August 1 deadline for trade deals was approaching Thursday night, the Trump Administration announced new tariffs affecting dozens of countries worldwide. The most notable are the duties affecting Canada (35%), Switzerland (39%), Syria (40%), Myanmar (40%), Laos (40%), and Brazil (50%). In what appears to be a move to further push countries into trade deals with the United States, the new tariffs will take effect on August 7.
Despite being historically one of the U.S.'s biggest trade partners, Canada woke up today to a whopping 35% tariff, up from 25%. Canadian Prime Minister Mark Carney responded to the White House announcement through an official statement posted on X and expressed disappointment with the action. Carney said his country will continue to negotiate with its neighbors to the south, but made clear his efforts will also focus on boosting the domestic market and diversifying Canada's trading partners.
Meanwhile, the 25% tariff currently looming over Mexican imports is on hold for 90 days, as the two governments are in the midst of negotiations to strike a trade agreement.
In the case of the Latin American country, the U.S. has been exerting significant pressure on Brazil to reach a trade deal, citing political concerns with the country's treatment of President Trump's ally, Jair Bolsonaro, and what the U.S. government has characterized as threats to Americans' free speech. The announced 50% tariffs promise to wreak havoc on the country's agricultural industry, which exports 90% of its products to the United States. The White House already announced exceptions for Brazilian products, including orange juice and aircraft, but it is unclear whether the biggest country in the Southern Cone will eventually get some reprieve from the United States.
Despite tariffs going into effect next week, shipments arriving in the United States before October 5 will be exempt from duties.
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