US Aluminum Tariffs Deepen Economic Impact Across Canada,Brazil

Trade tensions between the United States and Canada have intensified as President Donald Trump increased tariffs on Canadian goods outside the USMCA from 25% to 35%, citing concerns including Canada's handling of fentanyl trafficking and its recognition of Palestine. These tariffs heavily impact key Canadian sectors such as aluminum, steel, lumber, and automotive manufacturing, with companies like Ford facing substantial costs due to duties on Canadian aluminum crucial for their products. Canadian Prime Minister Mark Carney expressed dissatisfaction and emphasized efforts to protect jobs and diversify exports, while acknowledging a tariff-free agreement by the August 1 deadline is unlikely. Concurrently, the U.S. imposed a 50% tariff on Brazilian aluminum imports, threatening Brazil's aluminum industry and supply chains that are vital to U.S. and Canadian manufacturers. Discussions between the U.S. and Canada remain stalled, with Trump warning that failure to reach a deal will result in higher tariffs and Commerce Secretary Howard Lutnick indicating Canada could avoid tariffs by adopting a more conciliatory stance. These developments underscore growing trade disruptions, supply chain uncertainties, and economic challenges for North American industrial sectors.