U.S. President Donald Trump announced sweeping tariff adjustments on Wednesday, reshaping trade dynamics with South Korea, India, and Brazil while triggering volatility in global copper markets. The moves come ahead of an August 1 deadline for broader tariff escalations, signaling intensified efforts to renegotiate U.S. trade terms worldwide.
India Faces 25% Tariff Spike
Trump imposed a 25% tariff on Indian goods after stalled trade talks, citing New Delhi's "excessive tariffs" and energy purchases from Russia. India reaffirmed its commitment to a "fair, balanced" agreement but faces a Friday deadline to avert the new rates. This follows April's postponed 27% tariff proposal, heightening pressure on bilateral negotiations.
Brazil Hit With 50% Total Duty
A 40% additional tariff on Brazilian imports raises total duties to 50%, effective seven days post-announcement. The decision follows U.S. visa suspensions for Brazilian Supreme Court justices overseeing former President Jair Bolsonaro's trial. President Luiz Inacio Lula da Silva condemned the move as interference, while Finance Minister Fernando Haddad vowed continued dialogue.
South Korea Secures 15% Rate in $450B Deal
Washington reached a deal with Seoul for 15% tariffs – below the threatened 25% – in exchange for $350B in U.S. investments and $100B in energy purchases. South Korean President Lee Jae Myung called it a critical step to "eliminate uncertainty," with further financial commitments expected during his upcoming White House visit.
Copper Markets Plunge on 50% Universal Tariff
New 50% tariffs on semi-finished copper products sent U.S. futures tumbling 20%. Analysts warn the policy reversal risks destabilizing industrial supply chains, with Panmure Liberum's Tom Price noting: "Markets are repricing copper after Trump's epic backflip."
Low-Value Import Exemption Ends
The White House eliminated tariff exemptions for sub-$800 commercial shipments, effective August 29. Postal imports now face country-specific duties or temporary $80-$200 fees, impacting cross-border e-commerce.
These developments underscore growing trade policy volatility as the U.S. approaches critical negotiation deadlines, with markets and governments scrambling to adapt.
