A blitz of levy announcements issued
HOUSTON/SANTIAGO, Chile — US President Donald Trump on Wednesday issued a blitz of tariff announcements ranging from changes to previously threatened levies on imports of copper, and goods from Brazil.
The wave of announcements came as the clock ticked down toward an Aug 1 deadline for higher US tariff rates, as Trump pressed on with his bid to reshape global trade.
Trump said a 50 percent tariff on copper pipes and wiring would kick in on Friday. Details of the copper levy fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates and cathodes. The surprise move dragged down US copper prices more than 17 percent on the Comex exchange and unwound a premium over the London global benchmark that had grown in recent weeks, with shipments diverted there in anticipation of higher domestic prices.
"Markets are now busily repricing refined copper much lower after Trump's epic backflip on his own import tariff policy," said Tom Price, an analyst at the London brokerage Panmure Liberum. "Someone must have finally got through to (Trump) that the US economy simply can't afford this new trade hit." Trump first teased the copper tariff in early July, implying that it would apply to all types of the red metal, ranging from cathodes produced by mines and smelters to wiring and other finished products.
Yet the proclamation released by the White House said the tariff will apply only to pipes, tubes and other semifinished copper products, as well as products that copper is heavily used to manufacture, including cable and electrical components.
Also on Wednesday, Trump slapped a 50 percent tariff on most Brazilian goods to fight what he has called a "witch hunt" against former president Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from the heavier levies.
"We're not facing the worst-case scenario," Brazil's Treasury Secretary Rogerio Ceron told reporters. "It's a more benign outcome than it could have been." Brazilian President Luiz Inacio Lula da Silva said he would defend "the sovereignty of the Brazilian people in the face of measures announced by the president of the United States".
The White House also said the United States is suspending the "de minimis" exemption that allowed low-value commercial shipments to be shipped to the US without tariffs.
Under Trump's order, packages valued at or under $800 sent to the US outside of the international postal network will now face "all applicable duties" starting Aug 29, the White House said. The tax and spending bill recently signed by Trump repealed the legal basis for the "de minimis" exemption worldwide starting July 1, 2027.
The US and Pakistan said they had clinched a deal that Islamabad described as leading to lower tariffs on its exports. Neither mentioned the agreed tariff rate.
"We have just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves," Trump wrote on social media.
In Europe, the European Central Bank has identified US tariff policies as one of the most significant challenges facing the eurozone economy.
At a news conference last week, ECB President Christine Lagarde confirmed that front-loaded exports had helped boost euro area growth in the first quarter. But in the second quarter, countries heavily dependent on exports were hit hard by the US tariffs.
The Trump administration announced in March that imports of steel and aluminum products from the EU would face a 25 percent tariff, which was raised to 50 percent by the end of May.
Agencies - Xinhua
