No Mercy! Trump Delays Deal, Ready to Shoot Copper & Pharmaceuticals with Big Tariffs
US President Donald Trump on Tuesday (8/7) reiterated that there will be no extension of the new tariffs that will be implemented in early August. In statements via social media and during a cabinet meeting, Trump emphasized that he will continue his aggressive tariff policy, while also hinting that he will impose significant additional tariffs on copper and pharmaceutical imports.
Trump stated that a 50% tariff on copper imports would be announced soon, which immediately triggered a sharp spike in copper prices to the highest intraday level since 1988. In addition, he also warned pharmaceutical companies that they could be subject to taxes of up to 200% if they did not immediately move production domestically next year. Trump also targeted BRICS member countries, including India, with the threat of an additional 10% tariff even though he previously said he was close to reaching a trade agreement with the country.
This step was taken because Trump felt that America continued to be treated unfairly by trading partners, especially the European Union, which imposed taxes and fines on US technology companies. While Trump’s previous letters and executive orders have delayed “reciprocal” tariffs, his remarks Tuesday showed a renewed determination to speed up the implementation of the policy and increase pressure on more than a dozen countries that have yet to reach a quick trade deal with the U.S.
Trump’s tough stance has triggered a market reaction. The S&P 500 index moved erratically, and Treasury yields also fell as markets worried about an escalating trade war. Investors are now reassessing global risks amid the threat of further tariffs that could trigger turmoil in commodities, pharmaceuticals and multilateral trade relations. So far, market participants are still waiting for updates on the status of trade from seven countries that Trump promised to announce on Wednesday Washington time.
Source: (.ayu-newsmaker)
