Trump Escalates Trade War with New Tariffs on Copper, Tech, and Pharmaceuticals

In a bold move that escalates the ongoing global trade war, U.S. President Donald Trump has announced sweeping new tariffs on a range of imported goods, including copper, semiconductors, and pharmaceuticals. Posted late Tuesday on his social media platform, Truth Social, Trump revealed plans to issue “a minimum of seven” new tariff notices by Wednesday morning, with additional levies expected later. Though the targeted countries were not initially named, Trump warned of more duties to come, signaling a further deterioration in trade relations with key partners.

The new tariffs include a 50% duty on copper and upcoming levies on semiconductors and pharmaceutical products. This development follows Trump’s recent tariff letters sent to 14 countries—including South Korea and Japan—introducing import duties of 25% or higher, set to take effect August 1. The U.S. administration continued its tariff campaign on Wednesday by announcing additional duties on six more countries, ranging from 20% to 30%, affecting nations such as Algeria, Iraq, Libya, and the Philippines.

Despite the aggressive measures, financial markets remained relatively calm. However, the Japanese yen weakened further, reflecting concerns over trade tensions. Defending the policy, U.S. Treasury Secretary Scott Bessent highlighted the financial gains, stating that over $100 billion in tariffs have already been collected, with projections of reaching $300 billion by year-end. Research from Yale Budget Lab estimates that the effective tariff rate on U.S. consumers has surged to 17.6%, the highest since 1934.

Trump suggested some diplomatic progress in parallel with his hardline trade approach, noting that negotiations with China and the EU are showing promise. The EU, in particular, has become “much more cooperative,” he said, with a proposed tariff framework on EU exports expected soon. EU trade chief Maros Sefcovic confirmed progress toward a potential agreement before the extended August 1 deadline, though Italian officials cautioned that the talks remain complex.

Domestically, the new tariffs have faced criticism from political opponents. Massachusetts Governor Maura Healey condemned the policy as a “failed trade war” detrimental to American consumers and businesses. Trump’s ambitious “90 deals in 90 days” trade agenda has so far yielded few results, with only Britain and Vietnam having reached agreements, while talks with India continue. The administration remains under pressure to show that its tariff-first approach can yield meaningful trade victories.

Source: Punch