Trump’s new tariffs on Brazil reflect the weakness of US trade strategy

By Monica de Bolle
Peterson Institute for International Economics
July 17, 2026
Category: Business & Politics
Region: United States, International

The Supreme Court ruling that struck down US tariffs imposed by President Donald Trump under his emergency powers this year set off a scramble by the administration to reinstate tariffs on several countries using different rationales. Brazil is the first test case of this strategy, and it demonstrates the weakness of US leverage. …The administration exempted goods that “could cause economy-wide disruptions” or “cannot be adequately produced or sourced domestically.” …In effect, the process yielded to the reality that the US economy is integrated with other major global players such as Brazil. …Trade diversion around the globe as a reaction to US tariffs has turned Brazil into an export powerhouse. Since the first round of US tariffs in 2025, Brazil has posted record exports, with China absorbing some 37% of its trade at the end of 2025. Shipments to India are up more than 50%.

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