Trump's Tariff Tsunami: A Trade War Escalation

In a significant escalation of trade tensions, President Donald Trump revealed a 50% tariff on imported copper, with further tariffs on semiconductors and pharmaceuticals looming on the horizon. This announcement is poised to widen the ongoing trade war, sending ripples through global markets.

Trump's tough stance came a day after stronger tariffs were imposed on 14 trading partners, including major suppliers like South Korea and Japan. Countries such as Brazil, India, and other BRICS nations are also in his crosshairs, with a 10% tariff threat. Meanwhile, the European Union and China seem to be navigating negotiations, but uncertainty prevails as Trump threatens a tariff letter to the EU soon.

The tariffs are expected to impact the global economy significantly. U.S. copper futures surged over 10% following the new duties announcement, highlighting the crucial role copper plays in sectors like electric vehicles and military hardware. Pharmaceutical stocks declined amid potential 200% tariffs on drug imports. Other countries are striving to soften the blow, facing a looming August 1 deadline. Despite some progress, including deals with the United Kingdom and Vietnam, the path forward remains turbulent.

(With inputs from agencies.)