Trump Escalates Trade War: 50% Tariff on Copper, Pharma Tariffs Coming

U.S. President Donald Trump on Tuesday declared his administration would impose a 50% tariff on imported copper, further escalating the ongoing trade war that has already affected global markets. Trump also revealed upcoming tariffs on semiconductors and pharmaceuticals, expanding his tariff campaign just one day after issuing fresh trade warnings to 14 key partners, including South Korea and Japan.

“It’s about time the United States of America started collecting money from countries that were ripping us off … and laughing behind our back at how stupid we were,”  U.S. President Donald Trump said during a White House cabinet meeting.

Tariffs Target BRICS and More

Trump reiterated his earlier threat of 10% tariffs on goods from Brazil, India, and other BRICS countries. He also mentioned that trade negotiations were progressing positively with the European Union and China, though he indicated that the EU would soon receive a formal tariff letter.

“We have had a really good relationship with China lately, and we’re getting along with them very well. They’ve been very fair on our trade deal, honestly,” Trump added.

Markets React: Copper Soars, Pharma Stocks Dip

Following the tariff announcement, U.S. copper futures surged over 10%, reflecting concerns over supply disruptions in sectors like electric vehicles, military hardware, and power grids. Meanwhile, pharmaceutical stocks dropped due to the threat of a 200% tariff on drug imports, which Trump said could be postponed for about a year.

Global Responses and Delays

Pushback on Deadline

Some trading partners have expressed efforts to mitigate the effects of these new tariffs, especially after Trump extended the deadline to August 1. Despite his administration's promise of “90 deals in 90 days”, only agreements with Vietnam and the United Kingdom have been finalized so far. Trump noted progress with India, saying a deal is close.

“A minimum of seven” tariff notices will be released on Wednesday morning, “and more in the afternoon,” Trump stated on Truth Social.

U.S. Tariffs Hit Historic Highs

According to the Yale Budget Lab, the effective U.S. tariff rate has risen to 17.6%, up from 15.8%—marking the highest level since 1934. The administration is highlighting tariffs as a major revenue generator, with $100 billion already collected and $300 billion expected by year-end, according to Treasury Secretary Scott Bessent.

Reactions from Trading Partners

European Union: On Edge but Negotiating

The EU is seeking a deal before August 1 with concessions for industries like aircraft, medical devices, and spirits. EU officials are also trying to safeguard European carmakers operating in the U.S.

“If we don’t reach a fair trade deal with the U.S., the EU is ready to take counter measures,” said German Finance Minister Lars Klingbeil.

Asia: Strategic Bargaining

Japan, facing a potential 25% tariff, is firm on protecting its agriculture sector while negotiating for auto concessions.

South Korea said it would “intensify trade talks over the coming weeks to reach a mutually beneficial result.”

New Tariffs by Country (Confirmed Rates)

• Tunisia, Malaysia, Kazakhstan: 25%

• South Africa, Bosnia and Herzegovina: 30%

• Indonesia: 32%

• Serbia, Bangladesh: 35%

• Cambodia, Thailand: 36%

• Laos, Myanmar: 40%

China: Cautious Optimism Ahead of August 12 Deadline

While Washington and Beijing reached a trade framework in June, its fate hinges on a U.S. deadline of August 12. Trump emphasized ongoing positive dialogue with President Xi Jinping, raising hopes of a stable outcome.

Conclusion: Uncertainty Persists Amid Aggressive U.S. Trade Posture

Uncertainty continues to cloud the global economic landscape as the United States, under President Donald Trump, intensifies its protectionist trade agenda.

The announcement of a steep 50% tariff on copper imports, alongside looming duties on pharmaceuticals, semiconductors, and goods from a wide array of countries, signals one of the most aggressive tariff strategies in modern U.S. history.

While Trump claims that trade talks are progressing with countries like India, China, and the European Union, the unpredictable rollout of tariffs has left global partners scrambling to negotiate under unclear conditions.

With critical deadlines approaching on August 1 and August 12, financial markets remain on edge, reacting sharply to every new policy move. The resulting volatility underscores broader fears of a deepening trade conflict, which could have lasting consequences for supply chains, investor confidence, and international cooperation.

As Trump doubles down on his “America First” agenda, the world watches anxiously for clarity—or escalation.