A New Chapter in U.S. Trade Policy

Donald Trump's administration is preparing to implement a new tariff architecture before the global temporary tariff of 10% expires on Friday, July 25, 2026. This measure aims to replace the tariffs invalidated by the Supreme Court earlier this year and will impact 60 trade partners under the argument of combating forced labor, according to reports from Argentine outlets like Infobae and Ámbito, as well as international agency Bloomberg.

The Tariff Scheme and Affected Countries

The White House will use Section 301 of the Trade Act of 1974—a U.S. statute that allows the President to impose tariffs on countries that violate trade agreements or engage in unfair trade practices—to apply two levels of surcharges:

• 10%: For countries with partial bans, such as Canada, Mexico, the European Union, the United Kingdom, and Taiwan.
• 12.5%: For economies without legislation on the matter, including China, India, Japan, and, as revealed by Bloomberg, Argentina.

Canada at the Center of the Storm

Canada faces the most drastic measure with a 50% tariff on products like wine, dairy, cement, and furniture, affecting approximately $20 billion in bilateral trade. This measure is based on Section 338 of the Tariff Act of 1930 and will take effect on August 19, 2026. Prime Minister Mark Carney described the measure as a violation of the USMCA (the United States-Mexico-Canada Agreement, the successor to NAFTA), but took a proactive stance. He seeks to intensify and accelerate negotiations toward a comprehensive agreement while promoting Canada's trade diversification globally.

Brazil Responds at the WTO

Brazil saw a 25% tariff take effect on most of its exports (except coffee, beef, and aircraft parts) on Tuesday, July 21, 2026. President Lula da Silva rejected the measure and announced he would challenge it at the World Trade Organization (WTO), highlighting the U.S.'s historical trade surplus with Brazil. An additional 12.5% is being evaluated, which would bring the total tax burden on Brazilian goods to 37.5%.