Understanding Trump’s Tariffs on Canada, Mexico and Brazil

We start the week with new tariffs. Why not? The Trump tariffs have been a schizophrenic relationship from the get-go. The tariffs are on today, delayed tomorrow. A deadline is extended, then just decide arbitrarily to impose a 30% tariff on Mexico and Canada. But, here’s a thought.

President Trump says the tariffs on Canada are related in part to fentanyl crossing the border from both countries. Is it worth destroying the U.S. and Canadian economies because of 43 lbs. of fentanyl? Probably not. But here’s my question: if fentanyl is crossing the border, isn’t that a failure of Customs and Border Patrol? That is their job. So it’s just passing the buck to avoid responsibility and make Canada the boogeyman.

Maybe if, instead of trying to convert Los Angeles to a scene from “Black Hawk Down,” if CPB were at the border, less fentanyl would cross the U.S. border.

The Bolsonaro Bromance Equals 50% Tariffs

I still haven’t gotten over the fact that President Trump is threatening a 50% tariff on Brazil via Truth Social. Governance via memes. Why? Because President Trump thinks Jair Bolsonaro should not be prosecuted. A “Bolsonaro witch hunt.” What did Bolsonaro do? After losing the election, he got himself a January 6 re-enactment, the fun-in-the-sun edition. Birds of a feather stick together, or maybe just co-stars in the next reality TV show: “Global Authoritarian Roadshow.”

The President of Brazil, Lula da Silva, responded via “X.” Of course, President Trump’s economic advisor, Kevin Hassett, was able to put it succinctly when asked on ABC’s This Week. Just kidding, that was a train wreck.  

When asked about the tariffs on Brazil, Hasset said: “Well, bottom line is the president has been very frustrated with negotiations with Brazil and also with the actions of Brazil. In the end, though, you know, we’re trying to put America first. I think that a lot of people, when I’m talking to negotiators from other countries, at some point they’ll say, ‘What did we do wrong?’

“The message we’re all trying to get across is this is about America getting itself ready for the golden age by getting our house in order, by getting our tariff and trade policy and tax policy exactly where it needs to be for a golden age.”

I’m not sure how you can put “America First” by adding a tax, sorry, “tariff,” to the trade surplus we have with Brazil. Coffee is about to get more expensive.

Update Paragraph: Coffee prices started climbing the moment Trump hinted at tariffs. By February, arabica hit a record $4.41/lb—higher than the 2011 spike and even the 1977 frost crisis. Prices dipped but stayed high. As of June, roasted coffee costs U.S. buyers nearly 13% more than last year.

It Gets Even Better with Trump and Brazil

If that wasn’t enough, the Trump administration has now revoked the visas for Brazilian Supreme Federal Court Justice Alexandre de Moraes and his immediate family members. Clearly, this is not the norm.

The Damages of Trump’s Tariffs on Canada

The Budget Lab at Yale University shows that the Trump tariffs would shrink Canada’s long-run economy by 2.1%. This would impact Canada more than any other country. China would be the third most impacted country, with its economy contracting by 0.2%. Which country would be behind Canada and in second place? The U.S. Ever hear that second place is first loser?

Per the Budget Lab at Yale University, the U.S. economy is expected to be 0.4% smaller in the long run and 0.8% smaller in 2025 alone. This results in an income loss of $2,500 per household.

Here’s a tidbit of information you won’t find in any economic report: once prices go up, they don’t come down. Businesses realize that customers get used to the higher prices. Inflation isn’t a wave; it’s a ladder that once climbed, there’s no coming down.

You can find additional categories by clicking below or by using the search feature at the top of this page:

• Bankruptcy
• Your Wallet

Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

Updated on August 12, 2025.