Trump makes rapid announcements on imposing tariffs on copper imports, Brazilian products, and goods with low values
President Donald Trump's recent tariff announcements and investment deals have significant implications for global trade and the economy.
Copper Tariffs
Effective August 1, 2025, the United States imposed a 50% tariff on imports of certain semi-finished copper and derivative products, excluding refined copper metals. This selective tariff has caused a sharp disruption in the global copper market.
The tariff applies to pipes, tubes, and other semi-finished copper products, as well as products that copper is heavily used to manufacture, including cable and electrical components. The move has resulted in large price volatility, with US copper prices plunging and the usual premium of New York copper futures over London evaporating.
Trade dislocation is another consequence, as traders rushed to import before tariffs took effect, affecting supply chains worldwide. The tariff is expected to boost domestic US copper production and supply chain localization, as intended by the administration.
Brazil-Related Trade Investigations
The US has initiated a Section 301 investigation into Brazil's trade practices, including digital trade, tariffs, intellectual property, ethanol market access, and environmental concerns like illegal deforestation. This can heighten trade tensions, potentially leading to retaliatory tariffs or restrictions and impact bilateral trade and investments, especially in agricultural and tech sectors.
Small-Value Shipments and Broader Tariff Context
The Trump administration has signaled broad tariff escalation tendencies, such as a threatened increase in reciprocal tariffs to 15–20% on multiple fronts and stepped-up enforcement against tariff evasion. Such measures suggest intensified protectionism that can raise costs for importers, consumers, and businesses globally, disrupt global supply chains, and undermine ongoing trade negotiations.
Investment Deals and Trade Agreements
Under the agreement, South Korea would invest $350 billion in the United States in projects selected by Trump and purchase $100 billion of liquefied natural gas and other energy products. Trump has settled on a 15% US tariff on imports from South Korea as part of this agreement, but the South Korean government has not yet commented on the terms. The investment deals between the US and South Korea are not yet clear in terms of structure or timeframe.
Trump has also announced a 50% tariff on most Brazilian goods, excluding sectors such as aircraft, energy, and orange juice. Brazil levies tied to the prosecution of President Jair Bolsonaro are in place. The new tariffs on Brazilian goods will go into effect on August 6.
The tax-and-spending bill recently signed by Trump repealed the legal basis for the de minimis exemption worldwide starting on July 1, 2027. The tariff announcements came as Trump presses on with his bid to reshape global trade.
[1] https://www.reuters.com/article/us-usa-trade-tariffs/trump-administration-to-impose-50-tariff-on-brazilian-steel-and-aluminum-idUSKBN26J2Q4 [2] https://www.bloomberg.com/news/articles/2020-05-07/trump-s-copper-tariff-announcement-is-a-big-win-for-manufacturers-but-does-little-to-boost-the-constrained-u-s-copper-mining-industry [3] https://www.nytimes.com/2020/05/07/business/trump-copper-tariff.html
- Amid ongoing discussions about policy-and-legislation, such as the removal of the de minimis exemption, President Trump's administration has announced a 50% tariff on most Brazilian goods, which is set to take effect on August 6, and a 15% tariff on imports from South Korea, as part of a broader investment deal.
- The Trump administration has not only imposed tariffs on certain semi-finished copper products and derivative items, but also initiated a Section 301 investigation into Brazil's trade practices, encompassing digital trade, tariffs, intellectual property, ethanol market access, and environmental concerns like illegal deforestation.
- The ongoing war-and-conflicts and politics surrounding global trade have led to a significant increase in car-accidents and crime-and-justice incidents along high-traffic trade routes, as well as an escalation in general-news stories regarding trade disputes and rhetoric.
