Economics

Trump Unveils Sweeping 50% Tariffs on Copper and Brazilian Imports

U.S. President Donald Trump has set the stage for another round of high-stakes trade battles by announcing new tariffs that could reshape global commerce. On Wednesday, Trump declared a 50% tariff on all United States copper imports, along with a matching 50% duty on goods from Brazil. Both measures are scheduled to take effect on August 1, 2025.

Trump announced the copper tariffs on his Truth Social media platform, framing them as essential for national security. A recent investigation under Section 232 of U.S. trade law found that copper is critical to producing semiconductors, aircraft parts, electric vehicle batteries, and military equipment. Trump argued that past administrations had let the U.S. copper industry decline and vowed to rebuild it into a dominant force.

The tariffs on Brazil mark a dramatic escalation of tensions between Washington and Brasília. In a letter to Brazilian President Luiz Inácio Lula da Silva, Trump expressed frustration over what he called the “Witch Hunt” prosecution of former Brazilian President Jair Bolsonaro, a close political ally of Trump. He also accused Brazil of censoring American social media platforms and undermining free elections.

The administration also launched a Section 301 investigation into Brazil’s digital trade practices. This could lead to even more tariffs targeting Brazilian technology and e-commerce.

Brazil quickly responded, warning that any unilateral increase in tariffs would be met with countermeasures under Brazilian law. Trade experts have cautioned that this dispute could spiral into a damaging trade war between two of the largest economies in the Americas.

These moves are part of a wider effort by Trump to increase tariffs on U.S. imports from multiple countries. Just this week, he issued new tariff notices affecting trading partners including Japan, South Korea, the Philippines, and several others. Some of these duties range from 20% to 30% on billions of dollars in goods.

At the same time, the United States and the European Union are in talks to avoid tariffs on European products. Although negotiators have made progress, reaching a final agreement before the August 1 deadline remains uncertain.

While markets have so far shrugged off the announcements, economists warn that the rising cost of imported goods could soon affect American consumers and businesses. Trump’s administration claims the tariffs will protect critical industries and generate significant revenue, with estimates suggesting tariff collections could reach $300 billion by year-end.

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