Chile Ports: While the tsunami threat has been cancelled, bad weather is hitting the area and the ports remain closed today. It is expected that they will open tomorrow. Due to the weather and threat of swells, some containers have had to be removed from the terminals and stored in offsite depots for safety reasons.
Argentina to Chile Pass: The pass is closed today and is expected to remain closed for a few days, with the expectation that it will open up on Sunday. Winter delays will continue sporadically and please plan for the usual delays at this time of year.
Brazil: President Trump issued an executive order yesterday imposing a 40% tariff on most products from Brazil. The 40% is on top of the current 10% universal tariff, thus total tariff amount is now at 50%. The effective date is August 6. While there are many exclusions, beverage alcohol is not exempt from this new tariff. The tariff will not apply to good that are shipped prior to 12:01am on August 6 or are in transit before August 6 and arrive in the USA before October 5, 2025. These tariffs were issued under the IEEPA umbrella, with the President declaring a national emergency related to Brazil’s government actions, reportedly linked to the prosecution of former Brazilian President Jair Bolsanaro.
USA: The U.S. Court of Appeals will be hearing arguments on the IEEPA tariffs today in Washington DC. The Court will be reviewing the legality of the tariffs implemented under IEEPA. The Court of International Trade (CIT) unanimously ruled on multiple cases that the tariffs imposed under IEEPA (the International Economic Emergency Powers Act) were not constitutional. The Government appealed this decision and the Federal Court of Appeals agreed to pause the decision. We will be watching the case closely and will update information as it is made available.