Trump Cranks Global Tariff War Back Up as Trading Partners Fight Back
Just when the world thought Trump’s trade war couldn’t get more expensive, he proved everyone spectacularly wrong. Days after dishing out tariffs to 14 countries, plus a 50% slap to Brazil, the President escalated the global baseline from 10% to 15%-20%. With the Jul. 9 deadline behind us, America’s trading partners brace for round two — and they’re ready to push back.
- Trump’s Thursday announcement also singled out Canada, raising levies to 35% from 25% — citing “many Tariff, Non-Tariff, … and Trade Barriers, which cause unsustainable Trade Deficits.”
- Markets panicked as the S&P 500 dropped 0.47% from all-time highs while USD gained 0.22% — investors dumped Treasuries as yields broadly advanced.
The defiant response: Canada’s betting on USMCA loopholes already shielding 57.8% of exports under existing trade rules, making Trump’s threat largely symbolic. Meanwhile, Brazil’s President Lula dismissed US trade as only 1.7% of GDP and vowed equal retaliation. Both nations are actively courting alternative partners, with Brazil pushing non-dollar trade currencies that “likely worried Trump”. As Lula warned, this tariff fight could be “endless” — and America’s trading partners seem ready to throw down.