Trump escalates trade war with 50% tariffs on copper and Brazilian imports

U.S. President Donald Trump escalated his global trade offensive on Wednesday, imposing a new 50 percent tariff on U.S. copper imports, a 50 percent duty on goods from Brazil and also issued tariff letters to seven countries, all to start on August 1.

"I am announcing a 50 percent 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.

As "the second most used material by the Department of Defense," Trump said, copper is "necessary" for semiconductors, aircraft, ships, ammunition, data centers, lithium-ion batteries, radar systems, missile defense systems and hypersonic weapons.

"America will, once again, build a DOMINANT Copper Industry," Trump wrote.

The United States imports nearly half of the copper it uses, most of which comes from Chile, said the CNBC, citing data from the U.S. Geological Survey.

Brazil vows retaliation

The copper tariff announcement came hours after Trump also informed Brazilian President Luiz Inacio Lula da Silva in a letter 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 U.S. trade relationship.

Lula responded that any unilateral measure to raise tariffs will be responded to in light of Brazil's economic reciprocity law.

Rebuking the alleged American deficit is “false” information, Lula said on X that "Statistics from the United States government itself confirm a surplus of that country in the trade of goods and services with Brazil in the amount of $410 billion over the last 15 years."

Brazil's Vice President Geraldo Alckmin on Wednesday said Trump's 50 percent tariff was "unjust."

"I see no reason to increase tariffs on Brazil. Brazil is not a problem for the United States; it is important to reiterate that. The United States has a trade deficit, but a surplus with Brazil. Of the 10 products they most export to us, eight have a zero (tariff) rate, paying no taxes," Alckmin said in statements.

Brazil is the 15th largest U.S. trading partner, with total two-way trade of $92 billion in 2024, and a rare $7.4 billion U.S. trade surplus, according to U.S. Census Bureau data.

Brad Setser, a former U.S. trade official now with the Council on Foreign Relations, said Trump's action could easily spiral into a damaging trade war between the two countries.

More tariff letters

On the same day, Trump also sent letters to the leaders of seven countries, notifying them that tariffs ranging from 20 percent to 50 percent will be charged on goods imported from these countries starting August 1.

Trump posted letters to seven countries – the Philippines, Brunei, Moldova, Algeria, Iraq, Libya and Sri Lanka – on Truth Social.

According to the letters, 30 percent tariffs will be imposed on Libya, Iraq, Algeria and Sri Lanka, 25 percent on Brunei and Moldova, and 20 percent on the Philippines.

The latest letters add to 14 others issued earlier in the week including 25 percent tariffs for powerhouse U.S. suppliers South Korea and Japan, which are also to take effect August 1 barring any trade deals reached before then.

Equity markets shrugged off Trump's latest tariff salvo on Wednesday. Following Trump's announcement of higher tariffs for imports from the 14 countries, U.S. research group Yale Budget Lab estimated consumers face an effective U.S. tariff rate of 17.6 percent, up from 15.8 percent previously and the highest in nine decades.

(With input from agencies)