Your Daily Trade Policy Briefing

US Imposes Broader Tariffs on Brazil, Signals Wider Strategy While EU-US Trade Deal Formalized

• UPDATE: US Imposes Broader Tariffs on Brazil, Signals Wider Strategy. The United States will implement a 25% tariff on most Brazilian imports starting July 22, 2026, following a Section 301 investigation into unfair trade practices, marking the first major action under a revamped Trump administration trade strategy after a Supreme Court ruling dismantled an earlier tariff framework. This move targets various Brazilian exports, including sugar and steel, but notably exempts products like coffee, orange juice, and beef, sparing 44% of Brazil's exports to the U.S.. This action signals a potential broader campaign, with dozens of other countries, including China and the European Union, possibly facing similar tariffs.

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• EU and US Formalize "Turnberry Agreement." On June 25, the Council of the European Union adopted a regulation to implement the "Turnberry Agreement," a trade deal announced in August 2025 that will remove EU tariffs on U.S. industrial goods and some agricultural products. In return, the U.S. will cap tariffs on most EU exports at 15% and reduce levies on European cars, though the European Parliament reserves the right to request suspension if the Trump Administration does not lower steel and aluminum duties by year-end.

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• UPDATE: USMCA Faces Renegotiation as Trump Administration Declines "As-Is" Extension. The Trump Administration will not extend the US-Mexico-Canada (USMCA) trade pact for another sixteen years "as-is," prompting members of the Democratic House Trade Working Group to issue a statement on July 17, 2026, advocating for renegotiation. Democrats are pushing for a new era of trade policy with stronger labor, wage, and environmental standards, robust enforcement mechanisms, and guardrails against offshoring.

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