Trump issues blitz of tariff announcements on copper, Brazil, South Korea, small-value imports
The wave of announcements came as the clock ticked down toward an August 1 deadline for higher U.S. tariff rates, as Trump presses on with his bid to reshape global trade.
Capping a day that began with Trump announcing a 25% tariff rate on goods from India, after months of negotiations between Washington and New Delhi failed to produce a trade deal, Trump said a 50% tariff on copper pipes and wiring would kick in on Friday.
Trump plans to sign new executive orders on Thursday imposing higher tariff rates on several countries that have been unable to reach negotiated trade deals with the United States, Politico reported, citing a White House official.
Details of the copper levy fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates and cathodes.
The surprise move dragged down U.S. copper prices more than 17% on the Comex exchange and unwound a premium over the London global benchmark that had grown in recent weeks, with shipments diverted there in anticipation of higher domestic prices.
"Markets are now busily repricing refined copper much lower after Trump's epic backflip on his own import tariff policy," said Tom Price, an analyst at the London brokerage Panmure Liberum. "Someone must have finally got through to (Trump) that the U.S. economy simply can't afford this new trade-hit."
Trump first teased the copper tariff in early July, implying that it would apply to all types of the red metal, ranging from cathodes produced by mines and smelters to wiring and other finished products.
Yet the proclamation released by the White House said the tariff will apply only 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 aids manufacturers, but does little to boost the constrained U.S. copper mining industry, which for years has asked Washington for permitting reform or other steps that could fuel growth. The move is essentially a boost for Chile and Peru, two of the world's largest copper miners and major suppliers to the United States.
Trump on Wednesday slapped a 50% tariff on most Brazilian goods to fight what he has called a "witch hunt" against former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from the heavier levies.
That came as a relief for many in Brasilia, who since Trump announced the tariffs had been urging protections for major exporters caught in the crossfire. Shares of planemaker Embraer (EMBR3.SA), opens new tab and pulpmaker Suzano (SUZB3.SA), opens new tab rose.
"We're not facing the worst-case scenario," Brazilian Treasury Secretary Rogerio Ceron told reporters. "It's a more benign outcome than it could have been."
The new tariffs will go into effect on August 6, not August 1 as Trump announced originally.
Trump also announced the U.S. will charge a 15% tariff on imports from South Korea as part of a deal that eases, for now, tension with a top-10 trading partner and key Asian ally.
Imports from South Korea, a powerhouse exporter of computer chips, cars and steel, had faced a 25% rate.
"I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea," Trump wrote on Truth Social, shortly after he met with South Korean officials at the White House.
Trump said Seoul had agreed to invest $350 billion in the United States in projects selected by him and to purchase $100 billion of liquefied natural gas and other energy products.
South Korean Finance Minister Koo Yoon-cheol said on Thursday that a shipbuilding partnership package dubbed "Make America Shipbuilding Great Again" was key to the tariffs agreement.
The shipbuilding partnership worth about $150 billion will be led by South Korean shipbuilders to rebuild the U.S. shipbuilding industry, Koo said.
The other $200 billion would include funds for chips, nuclear power, batteries, and biologics, Kim Yong-beom, policy chief from the South Korean presidential office, told a briefing.
U.S. Commerce Secretary Howard Lutnick said on X that the South Korean energy purchases would take place "over the next 3.5 years."
The White House also said the United States is suspending a "de minimis" exemption that allowed low-value commercial shipments to be shipped to the United States without tariffs.
Under Trump's order, packages valued at or under $800 sent to the U.S. outside of the international postal network will now face "all applicable duties" starting on August 29, the White House said.
Trump earlier targeted packages from China and Hong Kong. The tax-and-spending bill recently signed by Trump repealed the legal basis for the de minimis exemption worldwide starting on July 1, 2027.
Goods shipped through the postal system will face one of two tariffs: either an "ad valorem duty" equal to the effective tariff rate of the package's country of origin or, for six months, a specific tariff of $80 to $200 depending on the country of origin's tariff rate.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
30 minutes ago
- Reuters
US tariff threat to keep rupee on the ropes ahead of RBI rate call
MUMBAI, August 6 (Reuters) - The Indian rupee is likely to remain under pressure ahead of the central bank's interest rate decision on Wednesday, after nearing an all-time low following President Donald Trump's fresh threats of steep tariffs on Indian goods. The 1-month non-deliverable forward suggests the rupee will open slightly weaker against the U.S. dollar from Tuesday's level of 87.80. The currency dropped as much as 87.8850 on Tuesday, just shy of its record low of 87.95 hit in February. Bankers said the rupee avoided hitting a fresh lifetime low, thanks to likely dollar sales by the Reserve Bank of India through state-run banks. The central bank had to step in after the rupee slid following Trump's threat of substantial tariffs on Indian goods over Russian oil purchases. "The RBI probably wanted to avoid headlines about the rupee hitting a new low on the same day Trump was ramping up tariffs," an FX trader at a private bank said. "87.90–88 is the key zone to watch. If the RBI does cut rates today, we'll most likely break past that, and the central bank may allow some weakness." About three-quarters of the 57 participants in a Reuters poll expect the RBI to leave the policy rate unchanged at 5.50%. The rest anticipate a 25-basis point cut, following a larger-than-expected 50-bp reduction in June. Citibank, ANZ, DBS, State Bank of India and ICICI Bank are among those expecting a rate cut. At the previous policy, SBI was the only one to predict a 50-bps reduction. Monetary policy operates with lags, and postponing a rate cut until inflation falls further or growth weakens more visibly could result in deeper and more persistent economic damage, SBI said in a note. "We expect RBI to continue frontloading with a 25 bps cut in August policy." KEY INDICATORS: ** One-month non-deliverable rupee forward at 87.94; onshore one-month forward premium at 11.25 paise ** Dollar index up at 98.78 ** Brent crude futures up 0.6% at $68.1 per barrel ** Ten-year U.S. note yield at 4.22% ** As per NSDL data, foreign investors sold a net $224.9 million worth of Indian shares on August 4 ** NSDL data shows foreign investors bought a net $45.9 million worth of Indian bonds on August 4
Reuters
an hour ago
- Reuters
OpenAI eyes $500 billion valuation in potential employee share sale, source says
Aug 5 (Reuters) - ChatGPT maker OpenAI is in early talks for a potential secondary stock sale that would allow current and former employees to sell shares, valuing the company at around $500 billion, a source familiar with the matter told Reuters on Tuesday. Bloomberg was first to report the news. The Microsoft (MSFT.O), opens new tab-backed company aims to raise billions through the sale, with existing investors, including Thrive Capital, expressing interest in buying some of the employee shares, the source said. Thrive Capital declined to comment on a Reuters request. Separately, OpenAI is still in the process of raising $40 billion in a new funding round led by SoftBank Group (9984.T), opens new tab at a $300 billion valuation to advance AI research, expand computational infrastructure and enhance its tools.
Reuters
an hour ago
- Reuters
Nvidia reiterates its chips have no backdoors, urges US against location verification
BEIJING, Aug 6 (Reuters) - Nvidia (NVDA.O), opens new tab has published a blog post reiterating that its chips did not have backdoors or kill switches and appealed to U.S. policymakers to forgo such ideas saying it would be a "gift" to hackers and hostile actors. The blog post, which was published on Tuesday in both English and Chinese, comes a week after the Chinese government summoned the U.S. artificial intelligence (AI) chip giant to a meeting saying it was concerned by a U.S. proposal for advanced chips sold abroad to be equipped with tracking and positioning functions. The White House and both houses of U.S. Congress of requiring U.S. chip firms to include location verification technology with their chips to prevent them from being diverted to countries where U.S. export laws ban sales. The separate bills and White House recommendation have not become a formal rule, and no technical requirements have been established. "Embedding backdoors and kill switches into chips would be a gift to hackers and hostile actors. It would undermine global digital infrastructure and fracture trust in U.S. technology," Nvidia said. It had said last week its products have no backdoors that would allow remote access or control. A backdoor refers to a hidden method of bypassing normal authentication or security controls. Nvidia emphasized that "there is no such thing as a 'good' secret backdoor - only dangerous vulnerabilities that need to be eliminated."
