New Trump Tariffs Spark Fresh Concerns for Economy and Small Businesses

President Trump has revived his tariff agenda with two significant actions in July 2026: a 25% tariff on most Brazilian imports that took effect July 23 following a Section 301 investigation into alleged unfair trade practices, and a 50% tariff on a range of Canadian goods, including hockey sticks and cement, signed July 20 under Section 338 of the Tariff Act of 1930 and due to take effect within 30 days . The Brazil tariff carves out exemptions for beef, orange juice, aircraft parts, and energy products.

The administration has framed the Canada tariffs around alleged discriminatory treatment of U.S. autos and dairy exports, while critics abroad, including the EU and Brazil, have called the latest measures unjustified. The EU has separately been named as a potential target for further tariffs tied to fines the bloc has levied against U.S. tech companies. Some analysts argue the current round could prove less contentious than earlier 2026 tariff actions, but expect the renewed protectionist push to persist and add further uncertainty for global trade,.

Small businesses face the most immediate exposure, since many lack the pricing power to pass higher import costs on to consumers without hurting demand . Economists have tied earlier 2026 tariff rounds to measurably higher household costs in some regions, and a prolonged cycle of tariffs and retaliation could widen the trade deficit and strain relations with major trading partners. A separate legal challenge invoking IEEPA and Section 301 authority is also working through the courts and could determine how durable these tariffs prove to be ,.