09-07-2025
Trump says steep copper tariffs in store as he broadens his trade war
After Trump's announcement of higher tariffs for imports from the 14 countries, US research group Yale Budget Lab estimated consumers face an effective US tariff rate of 17.6%, up from 15.8% previously and the highest in nine decades.
Trump's administration has been touting the tariffs as a significant revenue source. Treasury secretary Scott Bessent said Washington has taken in about $100bn (R1.7-trillion) so far and could collect $300bn (R5.3-trillion) by the end of the year. The US has taken in about $80bn (R1.4-trillion) annually in tariff revenue in recent years.
The S&P 500 finished slightly lower on Tuesday, a day after Wall Street markets sold off sharply after Trump's new tariffs announcement.
Trump said he will 'probably' tell the EU within two days what rate it can expect for its exports to the US, adding the 27-member bloc had been treating his administration 'very nicely' in trade talks.
The EU, the largest bilateral trade partner of the US, aims to strike a deal before August 1 with concessions for key export industries such as aircraft, medical equipment and spirits, according to EU sources. Brussels is also considering an arrangement that would protect European automakers with large US production facilities.
However, German finance minister Lars Klingbeil warned the EU was prepared to retaliate if necessary.
'If we don't reach a fair trade deal with the US, the EU is ready to take counter measures,' he said in the lower house of parliament.
Japan, which faces a possible 25% tariff, up from 24% threatened in April, wants concessions for its large automobile industry and will not sacrifice its agriculture sector, a powerful domestic lobby, for the sake of an early deal, top trade negotiator Ryosei Akazawa said on Tuesday.
South Korea, which also faces a possible 25% tariff, said it planned to intensify trade talks over the coming weeks 'to reach a mutually beneficial result'.
Washington and Beijing agreed to a trade framework in June, but with many of the details unclear, traders and investors are watching to see if it unravels before a separate, US-imposed August 12 deadline or leads to a lasting detente.
'We have had a good relationship with China lately, and we're getting along with them very well. They've been very fair on our trade deal,' Trump said, adding he has been speaking regularly to Chinese President Xi Jinping.
Trump said the US would impose tariffs of 25% on goods from Tunisia, Malaysia and Kazakhstan, 30% on South Africa and Bosnia and Herzegovina, 32% on Indonesia, 35% on Serbia and Bangladesh, 36% on Cambodia and Thailand and 40% on Laos and Myanmar.
