Washington: In a dramatic expansion of his global trade offensive, U.S. President Donald Trump on Tuesday declared a 50% tariff on copper imports, vowing further levies on semiconductors and pharmaceuticals in a move that escalates tensions with global trading partners and jolts financial markets.
The announcement came just one day after Trump fired off new tariff warnings to 14 nations, including key allies like South Korea and Japan, pressing for renegotiated deals under the threat of stiff duties. He doubled down on threats against emerging economies in the BRICS bloc namely Brazil, India, and others with potential 10% tariffs looming over a wide range of goods.
Addressing reporters during a White House cabinet meeting, Trump insisted the tariffs are a long-overdue corrective to what he calls decades of trade imbalance and foreign exploitation of U.S. markets. âWeâve been played for fools long enough,â Trump said. âItâs time we started collecting from the countries thatâve been robbing us blind.â
The announcement of a 50% duty on copper a metal critical for electric vehicles, weapons systems, power grids, and electronics sent U.S. copper futures soaring over 10%. Industry analysts warn the spike could disrupt supply chains and increase costs across a broad range of sectors.
Even more contentious were Trumpâs remarks about pharmaceutical imports, where he floated a jaw-dropping 200% tariff, though he hinted at a possible one-year delay in enforcement. Wall Street reacted swiftly, with U.S. pharma stocks sliding sharply on the news.
The president also hinted that long-anticipated tariffs on semiconductors, a vital pillar of the digital economy, would soon be formalized raising fears of further disruption to an already strained global chip supply.
Trade officials across the globe scrambled in response. According to Axios, Qatar, a key intermediary in Middle East diplomacy, had high-level talks with White House aides just ahead of these announcements, underscoring Washingtonâs simultaneous maneuvering on multiple fronts.
Trump confirmed that âa minimum of sevenâ new tariff notices would be issued by Wednesday, with even more to follow later in the day. He gave no specifics but promised the pressure would continue. âCountries are lining up to make deals,â he said.
Not all are welcoming the approach. Japan, facing a 25% auto tariff, warned it would not allow its domestic farming sector to be used as a bargaining chip. South Korea also faces a 25% tariff threat and pledged to intensify negotiations in the coming weeks to protect its trade interests.
European Union leaders, meanwhile, are attempting to strike a deal before Trumpâs August 1 deadline to avoid a tariff battle. EU officials are particularly concerned about preserving exports in sectors like aerospace, medical devices, and spirits. However, German Finance Minister Lars Klingbeil made it clear the EU would retaliate if provoked: âIf fair terms arenât reached, weâre ready with countermeasures.â
In addition to the copper tariff, Trump unveiled a sweeping list of new country-specific rates, including:
⢠25% on imports from Tunisia, Malaysia, and Kazakhstan
⢠30% on South Africa and Bosnia & Herzegovina
⢠32% on Indonesia
⢠35% on Serbia and Bangladesh
⢠36% on Cambodia and Thailand
⢠40% on Laos and Myanmar
These numbers mark one of the most aggressive waves of tariffs in modern U.S. trade history. According to the Yale Budget Lab, the effective average U.S. tariff rate now sits at 17.6%, up from 15.8% the highest since 1934.
The broader economic impact was felt immediately. The S&P 500 dipped slightly on Tuesday after a sharper decline the previous day, as investors braced for prolonged uncertainty in the global marketplace.
Trumpâs administration claims the tariffs are generating massive revenue. Treasury Secretary Scott Bessent reported that the U.S. has already collected $100 billion in duties, and projects up to $300 billion by yearâs end.
Still, many global negotiators say the ad hoc nature of Trumpâs tariff regime is complicating talks. Deals are difficult to finalize, they argue, when new penalties are rolled out unexpectedly, often via Truth Social or public remarks rather than formal channels.
Amid the escalating trade drama, Trump claimed that relations with both China and the European Union were âgoing well.â He revealed he had been in regular communication with President Xi Jinping, saying the two sides had âa good relationshipâ and that China had been âvery fairâ in recent trade discussions.
However, uncertainty looms large. A fragile U.S.âChina trade framework, signed in June, is still lacking in clarity, and faces a U.S. deadline of August 12 to solidify details or risk unraveling.
Meanwhile, only two trade deals have been finalized since Trump unveiled his â90 deals in 90 daysâ campaign in April those with the United Kingdom and Vietnam. Talks with India are reportedly nearing completion.
With a growing list of targeted sectors and countries, Trump is making it clear that tariffs will be a central pillar of his second-term economic agenda. Whether this approach results in stronger trade agreements or global pushback remains to be seen.
But one thing is certain: the worldâs trading partners are being forced to react swiftly and strategically in the face of Washingtonâs increasingly unpredictable trade doctrine.