Trump Imposes New Trade Tariffs on Eight Nations Including Brazil and the Philippines

Post by : Mina Rahman

US President Donald Trump has revealed a new set of trade tariffs targeting eight nations, escalating global trade tensions as the August 1 deadline approaches. The announcement was made via multiple letters posted on Trump’s social media platform, Truth Social.

The countries impacted are Brazil, Sri Lanka, Algeria, Brunei, Iraq, Libya, Moldova, and the Philippines. Brazil faces the highest tariff at 50 percent, while Sri Lanka, Algeria, and Iraq are subjected to 30 percent duties. Brunei, Libya, and Moldova will incur 25 percent tariffs, and the Philippines has a lower rate of 20 percent.

In his correspondence with Brazil, Trump accused the nation of engaging in “serious injustices” related to censorship and threats to democratic processes. He reiterated his backing for former Brazilian President Jair Bolsonaro, who has previously disputed election results, akin to Trump's own political experiences.

These tariff decisions follow the end of a 90-day negotiation period that initially set a 10 percent baseline tariff. Although Trump has provided additional time for discussions prior to the August deadline, he clearly stated that no further extensions will be granted to the countries receiving these communications.

According to data from the US Census Bureau, the trade imbalances with most affected countries are relatively minor. For instance, the trade deficit with Sri Lanka is estimated at $2.6 billion and $4.9 billion with the Philippines, which are considered modest against the backdrop of the $30 trillion US economy. Moreover, the US maintains a trade surplus of $7.4 billion with Brazil, making the significant tariff on Brazilian goods particularly noteworthy.

This action comes on the heels of recent threats of 25 percent tariffs on Japan and South Korea, exuding pressure on steadfast US allies to finalize trade agreements. To date, the Trump administration has secured only two trade deals with the United Kingdom and Vietnam.

Concurrently, indications of economic strain are surfacing within the US, with GDP contracting by 0.5 percent in the first quarter and job growth declining in tariff-sensitive sectors like construction and trade. Nevertheless, US stock markets have largely remained stable following this announcement.

Trump's renewed tariffs exemplify his assertive trade policy, which continues to impact global markets and alters international diplomatic and economic relations.