What happened
The Trump administration is pressing ahead with its tariff agenda despite multiple legal setbacks and growing unease among Republicans. U.S. Trade Representative Jamieson Greer told the Senate Finance Committee on Wednesday that the administration's trade strategy remains unchanged, even as the legal basis for tariffs shifts. "The specific authorities this administration is using have changed, but the trade strategy has not," Greer said, vowing to continue using tariffs to reindustrialize the economy and protect American workers.
Why it matters for the market
A 10 percent global tariff imposed under Section 122 of the Trade Act of 1974 is set to expire on Friday, as that authority only allows tariffs for 150 days. The administration is expected to pivot to Section 301 of the same act, which Greer said would cover 99 percent of U.S. trade and is considered more legally durable. A 25 percent tariff on certain Brazilian goods under Section 301 took effect Wednesday, linked by Trump to the prosecution of former Brazilian President Jair Bolsonaro.
Tensions with Canada escalated after Trump imposed an additional 50 percent tariff on Canadian wine and cement under Section 338 of the Tariff Act of 1930, citing discriminatory trade measures. Canadian Prime Minister Mark Carney called the tariffs a "direct violation" of the USMCA and canceled a joint ceremony for the Gordie Howe International Bridge. The U.S. declined to renew the USMCA earlier this month, though the agreement remains in force until 2036.
What traders should watch
Trump also warned that imported generic drugs would face a 100 percent tariff starting in August 2028 unless production moves to the U.S. The tariff policy remains unpopular: a YouGov poll found over 70 percent of U.S. adults believe tariffs have raised prices. Republican Senator John Cornyn expressed concern, saying "tariffs on imports raise prices on American products." Despite the political headwinds, the administration shows no signs of backing down.
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