Trade policy news covering tariffs, trade agreements, import/export regulations, trade wars, and international commerce.
President Donald Trump blamed Canada for wildfire smoke spreading across the U.S. and said he would add the cost of dealing with the pollution to existing tariffs on Canadian goods. Michigan and Ohio lawmakers also criticized Canada, with some threatening sanctions or annexation. Heavy smoke from hundreds of Canadian fires has enveloped a swath of the U.S. from the Midwest to the Northeast.
The US will levy a 25% Section 301 tariff on most Brazilian goods starting July 22, targeting Brazil's state-run Pix payment system. The USTR argues Pix's rules disadvantage American firms like Visa and Mastercard. This marks the first use of Section 301 against a country's domestic payment system.
The US is pressuring the European Union to announce a rollback of import rules, according to the Financial Times. This follows earlier US pressure that led the EU to delay methane fines.
U.S. companies have received $71 billion in tariff refunds after the Supreme Court struck down IEEPA tariffs in February. PepsiCo and McCormick plan to use refunds to counterbalance commodity inflation from the Iran war, rather than passing savings to consumers.
Brazil's government delayed invoking its Reciprocity Law and chose a cautious approach to avoid escalating trade conflict with the US after a 25% tariff on Brazilian exports. Foreign Minister Mauro Vieira rejected US demands as excessive, while Brazil announced support for affected companies.
This commentary argues that Trump's threat to impose tariffs on Canada in response to wildfires is harmful and illegal. It contends that the tariffs would damage both economies, fail to address the fires, and exceed presidential authority, while criticizing the rationale as blaming Canada for global warming.
The author, president of the Canadian Cattle Association, argues that a free trade agreement with the Mercosur bloc could harm Canada's beef industry due to lower production standards and costs in South America. He contends that increased imports could reduce domestic production, threatening food security and the economic foundation of rural Canada.
U.S. Trade Representative Jamieson Greer visited Utah's steel, mineral, and livestock industries, praising the state as a model for Trump's 'Made-in-America' agenda. He toured Ionic Mineral Technologies, which reported a potential $12.1 billion profit from critical minerals, and Jorgensen Farms, days after requesting an investigation into import surges harming domestic sheep suppliers.
This commentary argues that Canada's indefinite trade limbo with the US is causing a quiet manufacturing recession, with firms moving production south. It contends that while avoiding a bad deal is prudent, the ongoing uncertainty is eroding Canada's industrial base and time is running out.
Mexico's new US Ambassador Roberto Lazzeri stated that the USMCA review should be completed later this year. He urged the US, Mexico, and Canada to accelerate trade talks to provide investor certainty and preserve regional competitive advantages.