U.S. President Donald Trump has waged a one-man trade policy revolution. Additionally, he has sent several letters announcing new tariff rates on imports from at least 7 additional countries. This announcement follows a week in which he similarly conveyed punitive responsibilities to 14 other countries earlier this week. Additionally, with the publication of the new tariffs—including a striking 50% tariff on copper imports—these tariffs are scheduled to begin on August 1.
In his recent tweets, Trump made it very clear that he intends to impose tariffs. These tariffs can be as high as 200% on pharmaceutical exports entering the U.S. As a result, this hawkish position on trade has alarmed industries across the board and struck fear particularly in the commodities industry. The letters indicate that the U.S. “perhaps” will consider adjusting the new duties based on its relationship with each respective country.
The 50% tariff on copper imports is a big deal. It has already raised the premium that U.S. consumers are willing to pay. According to reports, this premium has more than doubled since to all-time high of over $2,600. This surge is indicative of increased demand resulting from panic that supply will be interrupted by the new tariffs set to take effect.
Comex copper futures were on fire this morning, exploding 2.5% higher. This new surge moves them back near the all-time high of $88.6 million hit just two days ago. The market’s reaction demonstrates the immediate impact of Trump’s tariff announcements, particularly as North American deliveries have seen a 10% increase, attributed to customers taking advantage of perceived price protections.
Trump emphasized that he would “give people about a year, year and a half” before the duties are enforced, suggesting a transitional period for businesses to adapt to the new trade landscape. He suggested future tariffs targeted to specific sectors. That means we are only beginning to see the tip of the iceberg in a greater tariff plan.
The ramifications of these tariffs are felt far beyond just copper imports. Every manufacturer is feeling the pinch as Porsche and several others are still reporting double-digit declines in global deliveries. Worst effects Key markets, especially China and Germany are experiencing severe impacts. In the first half of the year, Porsche had a 28% drop in China, as Doo noted. In the same time period, Germany experienced a 23% decrease, and total deliveries across Europe were down by 8%.
Cindy Rose of WPP, one of the world’s largest advertising behemoths, sent shares up almost 2% after announcing her appointment as CEO. This advancement is a promising breakthrough for the company’s fortunes. Rose, previously a board member and Microsoft COO for Global Enterprise, is expected to lead the company through these uncertain times.
Activist investor Standard Investments has made that clear by taking the extraordinary step of halving its stake in London-listed Johnson Matthey. The decision comes after a half-year, grassroots campaign that finally forced the company to implement a significant transformation. This action unequivocally evidences the alarmingly unpredictability of future international markets. The lesson for investors Corporations are actively reacting to trade policy changes and their own productivity and business models.
Businesses are doing their best to get ahead of the game. The fate of all these upcoming trade decisions will rest heavily on the state of international relations. The messaging from Trump’s letters shows that he is willing to negotiate but that he will stand firm on whatever is best for the U.S.