Former President Donald Trump has significantly increased trade tensions. From electric vehicles to tires, these tariffs caused aggravation, but the biggest shock came when he announced a 50% tariff on most Brazilian goods. This decision is a carefully timed continuation of a bigger plan to use trade negotiations as an economic weapon, and it is a response to political changes abroad.
Recently, Trump has continued this practice by placing a 25% tariff on imports from India. He’s prevented certain industries from incurring higher duties on Brazilian goods. Aircraft, energy, and orange juice industries are exempt from the new tariffs. That burden undoubtedly still weighs heavily on the Brazilian economy, for other productive goods are still hit with a harsh 50% punishment.
In addition to the tariffs, Trump has taken a hardline stance against Canada following its recent announcement backing statehood for Palestine. He wrote, “Wow! Canada has just announced that they are supporting statehood for Palestine. That would be nearly impossible for us to do a Trade Deal with them. Oh’ Canada!!!” This seemingly offhand comment belies his frustration and foreshadows roiling waters ahead in US-Canada trade relations.
The former president’s administration has justly put South Korea on the chopping block. They’ve further rescinded the 25% tariff on all imports to 15%. He expressed that South Korean consumers would welcome American products with open arms. This covers autos and agricultural products, and they will not apply any new import tariffs. South Korea is already preparing to dump $350 billion on the kinds of projects Trump decides on. Further, the country announced $100 billion in planned energy product purchases.
Tensions are already high between the US and India. In addition, Trump noted that India has long relied on Russia for most of its military hardware and energy needs. He expressed a lack of concern about India’s continuing transaction with Russia. I don’t care what India does with Russia… they can go take their dead economies together, for all I care. This chilling statement sums up the no-nonsense attitude that the former president has shown toward foreign diplomacy rooted in trade and economic muscle.
Further complicating matters, Trump’s administration has unveiled sanctions against Brazilian Supreme Court Justice Alexandre de Moraes, who oversees the trial of President Jair Bolsonaro. Scott Bessent criticized this decision, asserting that Moraes has engaged in an “unlawful witch hunt” against American and Brazilian citizens and companies. He condemned Moraes’ actions as part of an abusive and tyrannical campaign of censorship and arbitrary detentions that trample human rights.
This latest increase in tariffs marks yet another step in Trump’s one-man war to entirely remake the rules of international trade to better suit American interests. Through aggressive tariff strategies, Trump attempts to dissuade Americans from using foreign products. At the same time, he advocates repeatedly for reciprocal market access for American products.