Overview

• President Trump will impose a 35% tariff on Canadian goods from August 1, citing insufficient action to curb fentanyl trafficking across the northern border.
• A U.S. government official indicated that imports covered by the USMCA will likely be exempt from the new duty, but no formal decision has been finalized.
• Brazilian President Luiz Inácio Lula da Silva pledged reciprocal 50% tariffs on U.S. products and has convened a ministerial group to consider a World Trade Organization appeal.
• Stock futures dipped immediately after the announcement as investors assessed the risk of higher consumer costs and disrupted supply chains.
• More than 20 other nations have received similar letters warning of tariffs ranging up to 50% if bilateral trade agreements are not secured by the August 1 deadline.