Overview

• President Trump announced that all imports from the European Union and Mexico will face a 30% tariff starting August 1, with the rate subject to further increases if either side imposes retaliatory duties.
• The tariff letters follow July threats of a 35% duty on Canadian goods over alleged fentanyl flows and a 50% levy on Brazilian imports tied to former president Jair Bolsonaro’s prosecution.
• More than 20 nations have been warned of blanket tariff rates between 15% and 20% unless they finalize trade agreements with the U.S. by the self-imposed August 1 deadline.
• Financial markets have remained relatively calm despite renewed trade tensions as the U.S. dollar strengthens, although analysts warn that higher import levies could stoke inflation.
• Canada and the EU are scrambling to negotiate exemptions or interim accords under Prime Minister Mark Carney and EU trade officials to shield key sectors from the new duties.