US President Donald Trump on Wednesday announced a new 50 percent tariff on US copper imports and a 50 percent duty on goods from Brazil, both set to take effect from August 1, reports Reuters.
"I am announcing a 50percent TARIFF on Copper, effective August 1, 2025, after receiving a robust NATIONAL SECURITY ASSESSMENT," Trump said in a post on his Truth Social media platform, a reference to a Section 232 national security trade investigation into the red metal that has been underway.
The announcement came hours after he also informed Brazil that its reciprocal tariff on August 1 would rise to 50 percent from 10 percent, a shockingly high level for a country with a balanced US trade relationship.
Trump first broached the copper tariff during a cabinet meeting on Tuesday, setting off a scramble by companies to import as much copper as soon as possible from Chile and other major suppliers.
He blamed the decline of the US copper industry on past administrations, saying copper was needed for semiconductors, aircraft, electric vehicle batteries and military hardware.
"America will, once again, build a DOMINANT Copper Industry," Trump wrote.
Trump's Brazil tariff order came in a letter to Brazilian President Luiz Inacio Lula da Silva that vented anger over what he called the "Witch Hunt" trial of Lula's right-wing predecessor, Jair Bolsonaro, and added to an increasingly bitter public feud with Lula.
Trump also criticised what he said were Brazil's attacks on free elections, Americans' free speech and "SECRET and UNLAWFUL Censorship Orders to US Social Media platforms." He ordered the US Trade Representative's office to launch a new "Section 301" unfair trade practices investigation that could add even more tariffs, citing "Brazil's continued attacks on the Digital Trade Activities of American companies."
Lula responded to Trump's letter by issuing a statement saying that any unilateral measure to increase tariffs would be met with a response per Brazilian law.
Brad Setser, a former US trade official now with the Council on Foreign Relations, said Trump's action could easily spiral into a damaging trade war between the two democracies.
"This shows the danger of having tariffs that are under the unilateral control of one man," Setser said. "It's tied to the fact that Lula beat Trump's friend Bolsonaro in the election."
Brazil is the 15th largest US trading partner, with total two-way trade of $92 billion in 2024, and a rare $7.4 billion US trade surplus, according to US Census Bureau data.
Top US exports to Brazil are commercial aircraft, petroleum products and crude oil, coal and semiconductors, while Brazil's top exports to the US are crude oil, coffee, semi-finished steel and pig iron.
The South American country has held off on implementing a digital services tax but has sought to advance legislation with stronger competition regulations on digital platforms.
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