WASHINGTON: President Donald Trump intensified his global trade offensive on Wednesday, unveiling sweeping new tariffs targeting U.S. copper imports and Brazilian goods, both set to take effect on August 1.
In a post on his Truth Social platform, Trump declared a 50% tariff on all copper imports, citing national security concerns identified in a long-running Section 232 investigation. “I am announcing a 50% TARIFF on Copper, effective August 1, after receiving a robust NATIONAL SECURITY ASSESSMENT,” Trump wrote.
The announcement followed a cabinet meeting on Tuesday, where Trump first floated the idea, prompting a rush among U.S. companies to secure copper shipments from Chile and other suppliers before the new levies begin. Trump blamed past administrations for what he called the collapse of the U.S. copper industry, saying the red metal is critical to semiconductors, electric vehicle batteries, aircraft, and military equipment.
“America will, once again, build a DOMINANT Copper Industry,” he added.
In a separate move, the administration also informed Brazil that its tariffs on goods bound for the U.S. would rise from 10% to 50%, citing “reciprocal” treatment. The dramatic hike escalates tensions with one of the United States’ largest trading partners and comes amid Trump’s increasingly personal feud with Brazilian President Luiz Inacio Lula da Silva.
In a letter to Lula, Trump blasted Brazil over what he called a politically motivated “witch hunt” trial of former President Jair Bolsonaro, a close Trump ally. Trump also accused the Brazilian government of undermining free speech, attacking digital trade, and issuing secret censorship orders targeting U.S. tech companies.
The administration said it has instructed the U.S. Trade Representative’s office to launch a Section 301 investigation into Brazil’s digital trade practices, potentially setting the stage for additional tariffs.
In response, Lula said any unilateral tariff increases would be met with “a response in accordance with Brazilian law.”
Escalating Trade Tensions
The moves against copper and Brazil are part of a broader campaign of tariff increases. On Tuesday, Trump issued tariff notices to 14 other countries, including 25% duties on imports from key allies Japan and South Korea, and tariffs ranging from 20% to 30% on goods from smaller trading partners such as the Philippines, Sri Lanka, and Libya.
In total, Trump’s actions raise the effective U.S. tariff rate to 17.6%, the highest since 1934, according to an estimate from the Yale Budget Lab.
Critics have warned the new tariffs risk sparking trade wars. “This shows the danger of having tariffs that are under the unilateral control of one man,” said Brad Setser, a former U.S. trade official now with the Council on Foreign Relations. “It’s tied to the fact that Lula beat Trump’s friend Bolsonaro in the election.”
Brazil, currently the 15th largest U.S. trading partner, recorded $92 billion in two-way trade last year, with the U.S. running a rare $7.4 billion surplus. Major Brazilian exports to the U.S. include crude oil, steel, and coffee, while the U.S. exports aircraft, semiconductors, and petroleum products to Brazil.
Negotiations with the EU Continue
While Trump’s tariff blitz upends global markets, talks with the European Union are moving forward. EU trade chief Maros Sefcovic said negotiators are making “good progress” toward a framework agreement that could shield EU exports from looming U.S. tariffs.
The White House has extended the EU tariff deadline to August 1, giving both sides more time to finalize a deal. Trump said he would inform the EU of expected tariff rates “within two days” but noted the bloc had become “much more cooperative.”
European officials have floated proposals including import quotas and tariff credits to protect EU automakers, though some member states have warned the talks remain complex.
Markets and Revenue Impact
Markets reacted cautiously to the tariff news, with little movement in equity indexes. However, the yen weakened following the announcement of new duties on Japanese goods.
Treasury Secretary Scott Bessent said the tariff regime has so far generated about $100 billion in revenue, with projections rising to $300 billion by year-end. Trump’s administration has been promoting the tariffs as a vital funding source and a tool to reshape global trade.
Since April, Trump has promised “90 deals in 90 days” to replace the existing global trade framework. So far, only two new agreements — with the UK and Vietnam — have been finalized. Trump said a deal with India was “close.”
Outlook
As Trump pushes ahead with some of the highest tariffs in U.S. history, businesses and foreign governments are bracing for a turbulent second half of 2025. With global supply chains under pressure and negotiations ongoing, analysts warn that further disruptions could reshape trade and investment patterns for years to come.
