Trump tariffs 2.0

"This shows the danger of having tariffs that are under the unilateral control of one man," declared Brad Setser, a former US trade official now with the Council on Foreign Relations (an independent American think tank focused on US foreign policy and international relations).

- AMELIA H.C. YLAGAN

"Trump's action could easily spiral into a damaging trade war between the two democracies," he added.

US President Donald Trump launched his global tariff assault into overdrive on Wednesday, July 9, announcing a new 50% tariff on US copper imports and a 50% duty on goods from Brazil, both to start on Aug. 1, the news agencies reported. The announcement came hours after he also informed Brazil that its “reciprocal” tariff on Aug. 1 would rise to 50% from 10%, a shockingly high level for a country with a balanced US trade relationship.

Brazilian President Luiz Inacio Lula da Silva responded to Trump’s letter by issuing a statement saying that any unilateral measure to increase tariffs would be met with a response in accordance with Brazilian law. Brazil is the 15th largest US trading partner, with total two-way trade of $92 billion in 2024, and a rare $7.4 billion US trade surplus, according to US Census Bureau data.

Trump has enacted a series of steep protective tariffs affecting nearly all goods imported into the United States. From January to April, the average applied US tariff rate rose from 2.5% to an estimated 27%, the highest level in over a century, according to Politico. Following later policy rollbacks, the rate was estimated as 15.8% as of June.

“Trump’s administration has been touting those tariffs as a significant revenue source. Treasury Secretary Scott Bessent said Washington has taken in about $100 billion so far and could collect $300 billion by the end of the year. The United States has taken in about $80 billion annually in tariff revenue in recent years,” Rappler noted.