Overview

• In letters posted on Truth Social on July 12, Trump announced a 30% tariff on all imports from Mexico and the European Union effective August 1.
• Canada faces a 35% levy starting next month under a July 11 letter, with USMCA-compliant goods potentially exempt pending further negotiation.
• The administration has proposed raising the baseline global tariff from 10% to 15–20% for other partners and threatened a 50% duty on Brazil over its handling of former President Bolsonaro’s trial.
• No major trading partner has accepted concessions by the August 1 deadline, highlighting the use of tariff deadlines as leverage in bilateral talks.
• Equity markets have shown muted volatility while the dollar has strengthened against major currencies on renewed trade-tension fears.