Trump’s new flat-rate tariff is a boost for China and Brazil
Financial Times
February 22, 2026
AI-Generated Deep Dive Summary
The Financial Times reports that U.S. President Donald Trump’s new flat-rate tariff policy is benefiting China and Brazil while negatively impacting key American allies such as the UK, EU nations, and Japan. The Supreme Court ruled against previous levies, leading to a shift in trade dynamics. This decision has raised concerns among US partners, who were hit hardest by the changes.
The flat-rate tariff replaces the previous country-specific system, which targeted imports based on individual nations’ trade practices. While this approach simplified the process, it disproportionately affected major U.S. allies. For instance, the UK and EU countries now face higher tariffs compared to China and Brazil, which are seeing reduced barriers as a result.
The change is particularly significant for global trade relations. US allies argue that the new policy undermines decades of cooperation and fair trade practices. Meanwhile, China and Brazil are poised to gain economically from the revised tariffs, which could strengthen their positions in international markets.
This development highlights the ongoing tensions in global trade policies and their far-reaching economic implications. For businesses and investors, understanding these shifts is crucial for navigating market conditions and making informed decisions. The article underscores how such policy changes can alter trade balances and strategic relationships between nations.
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Originally published on Financial Times on 2/22/2026