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US Unveils New 25% Tariff on Certain Imports from Brazil

Tourists visit the Ponte de Saudade at Jose Bonifacio Beach on Paqueta Island, Rio de Janeiro state, Brazil, on July 11, 2026. (Photo by Pablo PORCIUNCULA / AFP)
Tourists visit the Ponte de Saudade at Jose Bonifacio Beach on Paqueta Island, Rio de Janeiro state, Brazil, on July 11, 2026. (Photo by Pablo PORCIUNCULA / AFP)
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US Unveils New 25% Tariff on Certain Imports from Brazil

Tourists visit the Ponte de Saudade at Jose Bonifacio Beach on Paqueta Island, Rio de Janeiro state, Brazil, on July 11, 2026. (Photo by Pablo PORCIUNCULA / AFP)
Tourists visit the Ponte de Saudade at Jose Bonifacio Beach on Paqueta Island, Rio de Janeiro state, Brazil, on July 11, 2026. (Photo by Pablo PORCIUNCULA / AFP)

The United States announced on Wednesday a new tariff on various imports from Brazil, following a year-long investigation into the Latin American giant's trade and other policies.

The 25 percent tariff is set to take effect on July 22, as the Trump administration seeks to rebuild its tariff agenda following legal setbacks.

A range of products including beef, coffee and certain aircraft parts will be exempted, a senior US official told reporters.

The exclusions also cover certain goods that the United States does not produce.
Brazil condemned the tariffs on Thursday, promising that "reciprocal" measures would be taken.

"There is no justification for unilateral measures against our country," President Luiz Inacio Lula da Silva's office said in a statement on X.

US Trade Representative Jamieson Greer said Brazil's "unreasonable acts, policies, and practices" have hurt US commerce by unfairly benefitting Brazilian producers and "restricting access to one of the world's top export markets."

"We remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation," AFP quoted Greer as saying in a statement.
In earlier findings, the US investigation deemed that certain practices by Brazil were "unreasonable or discriminatory and burden or restrict US commerce."

Brazil has denied all allegations of unfair trade practices, calling them "unfounded" and "absurd."

US Secretary of State Marco Rubio said the Brazilian government had "not negotiated with the US in good faith."

"Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that," he said in a post on X.

The new tariff comes as President Donald Trump's administration pushes to rebuild his economic agenda after the US Supreme Court in February struck down a swath of his global tariffs.

The Brazil tariffs were justified under Section 301 of the Trade Act, Greer's office said, and the Trump administration this year initiated other probes using the same authority.

US officials have already proposed new tariffs targeting dozens of trading partners for their alleged failures to act against forced labor.

In Brazil's case, a senior US official took aim Wednesday at what Washington deemed as adverse actions on digital trade, alongside "unfair" competition linked to state-owned electronic payments system PIX, among other issues.

The official rejected criticism that Section 301 probes were being used for political purposes.
The official said the door to negotiations remain open, although Washington wishes for its concerns -- including allegations Brazil gives preferential treatment to partners like Mexico and India -- to be resolved.

While the Trump administration said it does not expect retaliation following Wednesday's announcement, it warned that pushback could invite further US countermeasures.

At a public hearing held by Greer's office in Washington this month, Brazilian conservative presidential hopeful Flavio Bolsonaro urged the United States against imposing the new tariffs.

The eldest son of Brazil's former right-wing president Jair Bolsonaro argued that new duties would benefit Lula, his political rival.

The pair are top competitors in the October presidential election.

Last year, the Trump administration hit Brazil with sharp tariffs over the coup trial against Jair Bolsonaro, who is now serving a 27-year prison sentence.

Many of the duties were rolled back after talks between both sides.

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Business

Europe Can’t Afford to Miss AI Revolution, Says ECB Chief

European Central Bank President Christine Lagarde addresses a press conference following the ECB Governing Council meeting at the ECB headquarters in Frankfurt, Germany, July 23, 2026. (Reuters)
European Central Bank President Christine Lagarde addresses a press conference following the ECB Governing Council meeting at the ECB headquarters in Frankfurt, Germany, July 23, 2026. (Reuters)
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Europe Can’t Afford to Miss AI Revolution, Says ECB Chief

European Central Bank President Christine Lagarde addresses a press conference following the ECB Governing Council meeting at the ECB headquarters in Frankfurt, Germany, July 23, 2026. (Reuters)
European Central Bank President Christine Lagarde addresses a press conference following the ECB Governing Council meeting at the ECB headquarters in Frankfurt, Germany, July 23, 2026. (Reuters)

European Central Bank chief Christine Lagarde said Wednesday that the continent could not afford to miss out on the artificial intelligence revolution as the continent's growth model comes under increasing pressure.

The United States and China are seen leading the AI race, with their companies producing the most advanced large language models and rapidly building vast new data centers.

"Europe largely missed out on the first digital revolution, as the commercial gains from the spread of information and communication technologies were captured disproportionately elsewhere," Lagarde said at a World Economic Forum event in Geneva.

"We cannot afford to repeat that experience with artificial intelligence, the second digital revolution," she said.

While European companies are investing heavily in AI, barriers in the eurozone are hindering them from scaling up their operations, she said.

The "fragmentation" of EU markets means firms are not competing enough across the whole eurozone and also struggled to raise funds, particular when compared to US peers, Lagarde said.

"The result is fewer firms growing to global size and slower diffusion of new technologies across the economy."

She added that scale is particularly important for Europe to be able to compete in AI and other new technologies at a time when Europe's post-war growth model faces major challenges.

She noted that Europe had long benefitted from "three pillars" -- a rules-based global order underpinned by US security guarantees, cheap energy and expanding global trade.

"All three are weakening as the international environment changes," she said.

"These shifts suggest that Europe's post-war growth model is eroding. And it is unlikely to return to the form we once knew."

The return of US President Donald Trump to the White House, in particular, has shaken relations between the United States and Europe.

He has imposed hefty tariffs on European Union imports and questioned long-standing US commitments to the continent's security.

Business

Trump Pauses 50% Tariffs on Canadian Goods for Three Days

This aerial view shows a Capital Southern Transportation, Inc. truck passing over the Peace Bridge between Canada and the US in Fort Erie, Ontario, on August 18, 2026. (AFP)
This aerial view shows a Capital Southern Transportation, Inc. truck passing over the Peace Bridge between Canada and the US in Fort Erie, Ontario, on August 18, 2026. (AFP)
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Trump Pauses 50% Tariffs on Canadian Goods for Three Days

This aerial view shows a Capital Southern Transportation, Inc. truck passing over the Peace Bridge between Canada and the US in Fort Erie, Ontario, on August 18, 2026. (AFP)
This aerial view shows a Capital Southern Transportation, Inc. truck passing over the Peace Bridge between Canada and the US in Fort Erie, Ontario, on August 18, 2026. (AFP)

US President Donald Trump paused the planned rollout of punishing new tariffs on Canadian goods late Tuesday, as both sides indicated they were close to a broader trade agreement after weeks of talks.

Trump announced the three-day reprieve from 50-percent duties on select goods just hours before a midnight deadline.

The delay was "based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!" Trump wrote on his Truth Social platform.

Canadian Prime Minister Mark Carney was less definitive, saying "substantial progress has been made" towards a comprehensive trade deal, but "there is important work still to be done."

Ottawa and Washington have held intense negotiations on revising their existing deal, the United States-Canada-Mexico Agreement (USMCA), which Trump signed and praised during his first term but now says needs to change.

The US Trade Representative's office said on X that the pact between Washington and Ottawa is set to "include comprehensive market access for all American goods, economic security commitments, digital trade alignment" and other provisions.

A proclamation by Trump to pause the duties added that the suspension came about as "Canada has expressed a commitment to remove the discriminations or unreasonable and unequal impositions at issue."

Carney said the prospective deal aims to "address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers and families."

- 'Discriminatory treatment' -

Trump had signed orders for the 50-percent duties last month, with the White House alleging "discriminatory treatment" by Canada against US automobile and dairy products.

The new tariffs would cover products such as wine, hockey sticks and cement.

They target around 5.5 percent of Canada's exports to the United States, worth about $20 billion, Oxford Economics estimates.

While this only poses a "modest" negative risk to Canada's economy, Oxford Economics said in a recent report that the duties would "affect central Canada's manufacturing sector much more severely."

Canadian negotiators have been in Washington to push for a deal to avoid the new tariffs and also secure relief on Trump's sector-specific duties, which have battered Canada's auto, steel, lumber and aluminum industries.

Ottawa reportedly offered concessions like pressuring provinces to put some US beverages back on their shelves.

Without going into details, Trump added in his Truth Social post: "The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!"

Trump has previously called for the revival of the controversial project opposed by environmental activists, which was blocked under his predecessor Biden.

- Political concerns -

"It's not unusual for a trade negotiation to go right up to the deadline," former US commerce official Christopher Padilla told AFP.

He expects that the Trump administration threatened new tariffs to try and win early concessions from Canada as the countries negotiate new terms for the USMCA.

Oxford Economics anticipates that manufacturers who stand to be most impacted include those in the cement, paper, printing, wood, clothing and electronic equipment sectors.

With the US Supreme Court striking down many of Trump's global tariffs earlier this year, the president had tapped an untested legal provision for the new duties targeting Canada.

The US duties will not apply to Canadian energy, potash or goods already facing sector-specific tariffs, but are set to hit products covered by the USMCA.

Trump's trade envoy Jamieson Greer previously said the tariffs aimed to "hold Canada accountable" for its retaliation against the United States.

Business

Oil Extends Climb on Prolonged Hormuz Export Uncertainty

An automated oil drilling rig operated by ExxonMobil in Midland, Texas, US, August 17, 2026. REUTERS/Sheila Dang
An automated oil drilling rig operated by ExxonMobil in Midland, Texas, US, August 17, 2026. REUTERS/Sheila Dang
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Oil Extends Climb on Prolonged Hormuz Export Uncertainty

An automated oil drilling rig operated by ExxonMobil in Midland, Texas, US, August 17, 2026. REUTERS/Sheila Dang
An automated oil drilling rig operated by ExxonMobil in Midland, Texas, US, August 17, 2026. REUTERS/Sheila Dang

Oil prices climbed for a fourth straight day on Wednesday as investors weighed conflicting messages from Tehran and Washington on whether the Strait of Hormuz is open to ships.

Brent crude futures climbed 69 cents, or 0.8%, to $91.71 by 0415 GMT, while US West Texas Intermediate crude futures were up 76 cents, or 0.9%, to $85.70 a barrel, Reuters reported.

Both contracts closed on Tuesday at their highest in more than three weeks as hopes of peace between the US and Iran faded.

US President Donald Trump said on Tuesday no talks were taking place with Iran ⁠and insisted the ⁠Strait of Hormuz was open, contradicting Iran's assertion that the critical waterway remained shut to shipping.

A temporary ceasefire agreement expired on Monday and a senior Iranian official told Reuters that his country was moving to a "fully offensive" military posture due to the diplomatic stalemate, though there were no reports of fresh strikes by either side on Tuesday.

"The shipping risks are increasing again as attacks from Iran ⁠and Houthis remain prevalent in both key chokepoints, keeping oil prices supported in the near term," said June Goh, senior oil market analyst at Sparta Commodities, referring to the Strait of Hormuz and Bab el-Mandeb strait.

Shipping through Hormuz slowed, data showed on Wednesday, as most shipowners avoided the key waterway due to a lack of clear signaling on its reopening from a blockade.

"However, Gulf producers are finding alternative export routes to bring oil out to the Gulf of Oman," said Goh. "If sustainable, this could help increase shut-in production from these two producers."

To avoid the Strait of Hormuz, Iraq's cabinet approved mechanisms for exporting Iraqi ⁠crude through specialized international ⁠and local companies and via multiple export outlets, the government said on Tuesday.

The contracts under the new mechanism will run for three months starting September 1, according to a statement issued after the cabinet meeting.

In the US, crude oil and distillate inventories fell, while gasoline stocks rose last week, market sources said, citing data from the American Petroleum Institute.

Official inventory numbers from the US Energy Information Administration are due at 10:30 a.m. ET (1430 GMT), with analysts polled by Reuters expecting crude stocks fell by about 600,000 barrels in the week ended August 14.