tellumore.com

Tag: #Tariffs

  • Canada Responds to Trump’s Tariffs and Flirts with BRICS

    Pixabay

    The trade dispute between Canada and the U.S. is no longer just about money — it is starting to shape new alliances. With increasingly tough tariffs, especially on lumber and steel, Canada is responding with domestic measures and seeking new partners, such as BRICS. The question is: are we witnessing a historic repositioning of the country?

    Ottawa’s Immediate Response

    In recent weeks, the Canadian government announced a package of up to 1.2 billion Canadian dollars to support the lumber industry, which has been hit hard by tariffs imposed by the Trump administration. The goal is to prevent job losses and maintain competitiveness in the global market, even with the extra weight of American tariffs.

    Market Diversification

    Canadian companies have accelerated their search for new trade partners, increasing exports to countries in Asia, Africa, and Latin America. This diversification strategy aims to reduce the country’s historical dependence on the U.S. market, which still accounts for a significant share of Canada’s foreign trade.

    Interest in BRICS

    BRICS — formed by Brazil, Russia, India, China, and South Africa, and now expanded to include Egypt, Saudi Arabia, and others — has emerged as an alternative route. With growing economies and increasingly robust trade agreements, the bloc offers Canada the chance to expand its global reach while reducing vulnerability to Washington’s decisions.

    Pragmatism Over Ideology

    Analysts stress that Canada’s approach to BRICS does not signify an ideological break with the U.S., but rather a pragmatic stance. Ottawa wants more strategic options at the negotiating table and does not wish to be dependent on a single partner, especially in times of political and trade uncertainty.

    References:

  • Trump and the Tariff Empire: A Global Economic Bully

    Since returning to the U.S. presidency in 2025, Donald Trump has launched an unprecedented tariff offensive against allied countries and key trading partners. It’s the peak of a policy driven more by authoritarian rhetoric than by sound economic strategy — a true case of economic bullying.

    An Authoritarian and Unilateral Approach

    Trump imposed steep tariffs — 50% on Brazilian goods, 25% on imports from Japan, Canada, and Mexico, and up to 55% on Chinese products — all based on vague claims about trade deficits or political alignment (as seen in accusations against former President Bolsonaro).

    These measures are implemented regardless of World Trade Organization rules or long-standing trade relationships. Economists harshly criticize the lack of strategic planning, warning that the exclusive focus on goods deficits ignores the role of services and global supply chain complexity.

    The World as a Target: No One Is Safe

    While most world leaders pursue multilateral agreements, Trump stands alone as the only global leader systematically issuing tariff orders year after year. He’s imposed bilateral tariffs on over 90 countries — including NATO allies, the EU, and emerging economies such as Brazil, Japan, and South Korea.

    This coercive strategy often blurs the line between personal and national interests — as seen when Bolsonaro’s legal situation was tied to sanctions against Brazil, turning domestic politics into tools of international leverage.

    Global Backlash: Retaliation and Damage to U.S. Credibility

    The international response was swift and coordinated. Canada and the European Union announced retaliatory tariffs on billions of dollars’ worth of American products, increasing the risk of a full-blown global trade war.

    In Brazil, the fallout was immediate: the real depreciated, the stock market dropped, and industries like coffee, meat, aluminum, steel, and even Embraer faced major setbacks. Embraer’s CEO compared the tariff impact to the shock felt during the pandemic.

    Economic Bullying: The Politics of Intimidation

    More than just a trade policy, Trump’s actions resemble a bullying tactic on a global scale — public threats, unilateral moves, and demands framed as non-negotiable. He pressures nations with loud threats, only to back off or go silent when the approach becomes counterproductive — a pattern some analysts have dubbed “Trump Always Chickens Out.”

    Brazil Pushes Back: Reciprocity and Sovereignty

    The Brazilian government responded forcefully. President Lula emphasized the country’s sovereignty and criticized the U.S. for acting unilaterally. Finance Minister Haddad warned that such measures harm both global trade and sustainable deglobalization.

    Brazil passed the Economic Reciprocity Law, allowing equivalent tariffs if Trump follows through on the 50% hike. The country is also considering taking the issue to the World Trade Organization (WTO).

    A Global Leader or a Global Bully?

    Trump is using tariffs as instruments of global coercion — an aggressive, isolationist stance with few historical parallels in U.S. diplomacy. Since 2025, he has stood as the only global leader enforcing systematic punitive tariffs, acting like an economic bully who disregards multilateral protocols and often bypasses objective data in favor of personal dominance.

    References