Trump Cranks Up Global Tariff War: Copper, Brazil, and More — What’s Going On?
On July 9, 2025, President Donald Trump threw the trade world into a frenzy by announcing a sharp escalation in his global tariff campaign. The big headlines? A staggering new 50% tariff on copper imports hitting U.S. shores starting August 1, alongside a matching 50% tariff on goods coming in from Brazil — a move that shocked many given the traditionally balanced trade relationship between the two countries.
Here’s the rundown on what’s happening and why it matters:
Copper Takes Center Stage
The surprise copper tariff announcement wasn’t out of the blue. Trump first hinted at this during a cabinet meeting the day before. His declaration on Truth Social — his go-to platform for big news drops — cited a “robust National Security Assessment” under Section 232 of the trade laws. This basically means the government sees copper as vital to national security.
Why copper? Trump points to its crucial role in key industries like semiconductors, aircraft manufacturing, electric vehicle batteries, and military gear. His blunt message? America’s copper industry has been neglected for too long, and it’s time to bring it back — big time.
“America will, once again, build a DOMINANT Copper Industry,” Trump declared.
This led to an immediate scramble among companies to rush in copper imports, especially from top suppliers like Chile, before the tariff kicks in.
Brazil Caught in the Crossfire
But Trump didn’t stop at copper. In a sharply worded letter to Brazilian President Luiz Inácio Lula da Silva, Trump announced a 50% tariff on Brazilian goods, up from the current 10%. The move raised eyebrows, especially since Brazil maintains a healthy trade balance with the U.S., including a $7.4 billion surplus last year.
Trump’s letter wasn’t just about tariffs; it was loaded with political punches:
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He criticized Brazil’s “Witch Hunt” trial of former president Jair Bolsonaro, who’s a political ally of Trump.
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Accused Brazil of undermining free elections and free speech.
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Claimed Brazil was behind “secret and unlawful censorship” on American social media platforms.
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Ordered the U.S. Trade Representative to open a “Section 301” investigation into what he described as unfair digital trade practices by Brazil — potentially paving the way for even more tariffs.
Lula fired back with a measured response, promising Brazil would respond according to its laws to any unilateral tariff hikes.
Experts Warn of Trade War Risks
Brad Setser, a former U.S. trade official now at the Council on Foreign Relations, highlighted the dangers of such aggressive tariff moves. He noted how these unilateral decisions, seemingly tied to political grudges (Lula beating Bolsonaro in the election), risk dragging two major democracies into a damaging trade conflict.
“This shows the danger of having tariffs that are under the unilateral control of one man,” Setser said.
Brazil ranks as the 15th largest U.S. trading partner, with major exports including crude oil, coffee, semi-finished steel, and pig iron, while the U.S. sends Brazil commercial aircraft, petroleum products, coal, and semiconductors.
Tariff Blitz Across the Board
Trump’s copper and Brazil tariffs are just the tip of the iceberg. Earlier that week, he also announced tariff hikes on seven smaller trading partners, with rates ranging from 20% to 30% on goods from places like the Philippines, Sri Lanka, Algeria, Iraq, Libya, Brunei, and Moldova.
Even powerhouses like South Korea and Japan, two of the U.S.’s biggest suppliers, face new 25% tariffs starting August 1, unless last-minute deals are struck. Japan, in particular, has felt the sting, with its currency — the yen — weakening amid trade tensions.
With these latest moves, U.S. consumers are staring at an average tariff rate of 17.6% — the highest in nearly 90 years, according to the Yale Budget Lab.
What’s Driving Trump’s Tariff Frenzy?
Since April, Trump promised “90 deals in 90 days” targeting unfair trade practices by various countries. But so far, only Britain and Vietnam have finalized agreements. India’s deal is reportedly close, but these new tariffs signal frustration with the slow progress.
The administration is also touting tariffs as a revenue boost. Treasury Secretary Scott Bessent said the U.S. has already collected about $100 billion this year and could hit $300 billion by year-end — up from roughly $80 billion annually in previous years.
Ongoing Negotiations with the European Union
While Trump fires off new tariffs, U.S. and EU negotiators are working hard behind the scenes to prevent a full-blown trade war with America’s largest trading bloc.
The EU, which represents 27 countries, was given an extended deadline to August 1 to finalize a trade framework aimed at rolling back some of these tariffs.
EU Trade Chief Maros Sefcovic sounded optimistic, telling lawmakers that a deal “may even be possible within days.” Yet, Italian Economy Minister Giancarlo Giorgetti cautioned that negotiations remain “very complicated” and could stretch right up to the deadline.
Key sticking points include:
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Tariff cuts versus import quotas
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Measures to protect the European auto industry
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Credits for EU automakers’ exports to the U.S.
The stakes are high: the EU is the biggest U.S. trading partner, and resolving these issues could ease tensions and stabilize global markets.
What Does This Mean for Global Business?
Trump’s rapid-fire tariff announcements have created a lot of uncertainty. Businesses, both in the U.S. and abroad, face headaches trying to plan ahead with new trade barriers looming.
Equity markets shrugged off the tariff news somewhat, but currencies like the Japanese yen took a hit. Meanwhile, industries reliant on metals, semiconductors, and pharmaceuticals are nervously awaiting the next moves in this fast-evolving trade saga.
Key Takeaways and What to Watch Next
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50% tariffs on copper and Brazilian goods begin August 1, marking a significant escalation.
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Seven other countries face new tariffs from 20% to 30%, plus 25% on South Korea and Japan.
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Trump’s moves tie trade policy tightly to national security claims and political rivalries.
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EU negotiations offer a potential breakthrough but remain fragile.
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Tariffs are driving U.S. consumer costs higher, with possible long-term impacts on supply chains.
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Experts warn about the risk of a full-scale trade war between major democracies.
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The administration is counting on tariffs to boost government revenue and protect key industries.
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