😏🇨🇦 Hey, stranger

Good morning! China is swiftly countering Donald Trump’s tariffs with levies of its own, potentially restarting the trade war we saw during Trump’s last stint in office. That time around, Brazilian exporters were able to replace American suppliers in China. But one of Trump’s “deals” with Beijing could backfire for Brazil.

Trump’s looming trade war could give Mercosur-Canada trade deal a nudge

The leaders of the United States, Mexico, and Canada struck last-minute deals to delay, by at least 30 days, the implementation of a 25% tariff on imports from Mexico and Canada. The move eases immediate concerns of a fresh wave of global trade turbulence, which could, in turn, accelerate free-trade negotiations between Canada and Mercosur — the South American bloc comprising Brazil, Argentina, Uruguay, Paraguay and, as of 2024, Bolivia.

👉 Why it matters. Hilton Nascimento, commercial director at the Brazil-Canada Chamber of Commerce, said Trump’s tariff threats could accelerate negotiations of a Mercosur-Canada trade agreement, introducing a “different dynamic” to the talks.

• “Mercosur is an attractive alternative for Canadian exporters, particularly in technology and innovation,” he told The Brazilian Report.

• Through his work with the chamber’s roughly 140 members, Nascimento has also observed growing interest among Canadian companies in expanding business with African markets through partnerships with Brazilian firms.

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