US President Donald Trump dramatically intensified his administration’s global tariff offensive, declaring a 50% duty on all US copper imports and a matching 50% levy on goods from Brazil, both effective from 1 August 2025, according to Reuters.
The copper tariff, announced via Trump’s Truth Social platform, follows a Section 232 national security investigation into the metal’s supply chain.
I am announcing a 50% tariff on Copper, effective August 1, 2025, after receiving a robust national security assessment.
Trump framed the measure as essential for rebuilding US industrial capacity. He emphasised copper’s critical role in semiconductors, aircraft, electric vehicle batteries, and military hardware, blaming previous administrations for the industry’s decline.
America will, once again, build a dominant Copper Industry.
The announcement triggered immediate market reactions, with companies rushing to secure shipments from Chile and other major suppliers before the deadline.
Simultaneously, Trump issued a letter to Brazilian President Luiz Inácio Lula da Silva, elevating Brazil’s “reciprocal” tariff from 10% to 50%.
The correspondence sharply criticised Brazil’s judicial proceedings against Trump’s ally, former President Jair Bolsonaro, labelled a “Witch Hunt trial”, and condemned Brazil’s alleged suppression of free elections and American free speech.
Trump further accused Brazil of issuing “secret and unlawful censorship orders to US social media platforms,” prompting the US Trade Representative to initiate a Section 301 unfair trade practices investigation targeting Brazil’s digital policies. Lula responded briefly, vowing to answer unilateral measures in accordance with Brazilian law.
Economic and diplomatic fallout intensifies
Brazil, the US’s 15th-largest trading partner with $92 billion in bilateral trade last year, represents an unlikely target given its rare $7.4 billion trade surplus with the United States. Key US exports to Brazil include commercial aircraft, petroleum, and semiconductors, while Brazil chiefly supplies crude oil, coffee, and semi-finished steel.
Former US trade official Brad Setser warned the move risks spiralling into a trade war between the US and Brazil.
This shows the danger of having tariffs that are under the unilateral control of one man. It’s tied to the fact that Lula beat Trump’s friend Bolsonaro in the election.
The Brazil and copper tariffs form part of a broader cascade of levies. On the same day, Trump imposed duties on seven smaller trade partners: 20% on the Philippines, 30% on Sri Lanka, Algeria, Iraq, and Libya, and 25% on Brunei and Moldova.
These followed earlier 25% tariffs set for major suppliers Japan and South Korea. Secretary Scott Bessent touted the tariff revenue stream, claiming $100 billion collected so far with projections reaching $300 billion by year-end, a significant surge from the typical $80 billion annual intake.
EU talks advance amid global uncertainty
US and European Union negotiators edged toward a potential agreement to avert tariffs on the bloc, the largest US bilateral trading partner. Trump indicated he would “probably” inform the EU of its tariff rate within two days, praising its newfound “cooperative” stance.
EU Trade Chief Maroš Šefčovič expressed optimism, suggesting a deal could materialise “in the coming days,” leveraging the extended deadline to 1 August. Discussions reportedly focus on shielding Europe’s auto sector through mechanisms like tariff cuts, import quotas, or export credits.
Analysts at Yale Budget Lab estimate Trump’s cumulative tariffs pushed the effective US tariff rate to 17.6%, threatening to raise consumer prices and disrupt supply chains. While equity markets initially shrugged off the announcements, economists warn of paralysis in business planning.
The administration’s pledge of “90 deals in 90 days” after April’s tariff rollout yielded just two agreements: with Vietnam (cutting tariffs to 20% with anti-transshipment clauses) and the UK (reducing auto and steel levies).
A deal with India remains elusive, and China talks are stalled despite Trump’s claim of a “framework” agreement.
