Trade tensions soar: Where Trump’s global tariff strategy stands now -Explained

President Donald Trump announced a 50% tariff on Brazilian goods, effective August 1, alongside strong criticism of the trial of former Brazilian president Jair Bolsonaro, calling it an “international disgrace.”

Bolsonaro faces charges over an alleged coup plot after narrowly losing the 2022 election to Luiz Inacio Lula da Silva. In response, Lula warned of potential retaliation under Brazil’s economic reciprocity laws.

A 50% US tariff on copper imports will also take effect on August 1, with Trump citing national security concerns and copper’s critical role in defense. The decision follows a Commerce Department investigation launched earlier this year.

These moves are part of a broader tariff campaign targeting multiple countries—including key allies such as Japan and South Korea—with duties ranging from 20% to 50%. Trump argues that the measures correct unfair trade practices and encourage domestic manufacturing.

While the US has reached partial trade agreements with the UK, Vietnam, and temporarily eased tariffs with China, negotiations with the European Union are still underway. Hopes remain high for a deal "in the coming days." Meanwhile, sector-specific tariffs on steel, aluminum, and autos remain in effect since Trump’s return to the White House in January. 

The 90-day suspension on sweeping US import tariffs was set to expire this week. Without action, new duties of up to 49% would have triggered for dozens of countries. Trump has now delayed implementation until August 1, adding to global uncertainty. So far, only limited deals with the UK and Vietnam have materialised. 

Since April, a 10% baseline tariff has applied to nearly all imported goods, excluding essentials like cellphones and computers. China faces a 30% minimum, with higher rates for certain products. In June alone, the U.S. collected $30 billion in tariffs—costs largely absorbed by American businesses and consumers. 

Trump has proposed steep new tariffs including:

·         25% on Japan and South Korea

·         30% on Iraq and Libya

·         50% on Brazil

While these mirror earlier proposals, they’ve been delayed to August 1. Analysts warn that policy shifts are fueling volatility in markets and manufacturing. 

Trump has sent official letters to various countries outlining revised “reciprocal” tariffs. Some received reduced rates compared to April's announcements, while others saw hikes. Countries notified include:

More countries could be added in the coming weeks.

US factories are delaying purchases amid pricing instability. The Institute for Supply Management reports rising caution among manufacturers facing unpredictable input costs. 

Tariffs on Chinese goods remain high after years of tit-for-tat trade battles. Trump is now tying economic pressure on Beijing to demands for action on fentanyl trafficking.

The EU currently faces a 10% baseline, but Trump has threatened to raise this to 50%. While talks continue, internal EU divisions could slow progress—Italy and Germany support compromise, while France and Spain favor a firmer stance.

Under the USMCA, most goods from Mexico and Canada are exempt. However, metals and dairy remain sensitive. Canada recently dropped a proposed digital tax after US objections, while Mexico is negotiating a steel quota and early USMCA review.

Both the UK and Vietnam have reached narrowly tailored agreements. The UK retains the 10% baseline, while Vietnam accepted a 20% rate, avoiding harsher penalties.

Separate duties now target:

·         Steel (50%)

·         Aluminum (50%)

·         Autos (25%)
Future tariffs may include pharmaceuticals, semiconductors, copper, and lumber.

A federal trade court recently ruled against Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify broad tariffs. The decision is under appeal but could limit presidential authority in future trade actions.

Starting August 1, new 25% tariffs will hit imports from 14 Asian countries. Japan has offered agriculture concessions, while South Korea seeks broader discussions, including on currency and defense.

Despite the deadline extension, Brussels is pushing for a deal by July 9. As noted, internal differences may complicate progress.

While largely shielded, Canada and Mexico still face targeted tariffs. Canada is negotiating on metals and dairy, while Mexico pushes for a quota system on steel and an accelerated USMCA review.

Trump’s unpredictable and aggressive tariff strategy is roiling global trade talks. With the August 1 deadline looming and few major deals in place, uncertainty remains the only constant.