U.S. President Donald Trump significantly escalated his global trade offensive on Wednesday by announcing two sweeping new tariffs: a 50% duty on copper imports and a 50% tariff on all goods imported from Brazil. Both measures are set to take effect on August 1, 2025.
“I am announcing a 50% TARIFF on Copper, effective August 1, 2025, after receiving a robust NATIONAL SECURITY ASSESSMENT,” Trump declared in a post on his Truth Social platform, referencing a “Section 232” national security investigation into copper that has been underway for several months.
Just hours earlier, Trump also informed Brazilian officials that their current 10% reciprocal tariff on U.S. goods would be hiked to 50%, a drastic shift given the traditionally balanced trade relationship between the two countries.
The announcement sent shockwaves through the commodities market. Trump had first hinted at the copper tariff during a cabinet meeting on Tuesday, prompting U.S. manufacturers to rush orders from Chile and other major copper-exporting nations in anticipation of higher costs.
Trump blamed past U.S. administrations for the decline of the domestic copper industry, arguing that copper is essential for critical sectors such as semiconductors, aerospace, electric vehicle batteries, and military technology.
“America will, once again, build a DOMINANT Copper Industry,” he wrote.
In a parallel move, Trump issued a formal letter to Brazilian President Luiz Inácio Lula da Silva, expressing outrage over what he called a “Witch Hunt” trial involving former President Jair Bolsonaro, a right-wing ally of Trump. The letter further deepened an already tense relationship between the two leaders.
Trump went on to accuse Brazil of undermining democratic norms, including attacks on free elections, restrictions on American free speech, and alleged “SECRET and UNLAWFUL Censorship Orders” targeting U.S. social media companies. He instructed the U.S. Trade Representative’s office to initiate a new “Section 301” investigation into unfair trade practices, citing Brazil’s alleged obstruction of U.S. digital trade activities.
In response, President Lula issued a statement warning that any unilateral tariff increases would be met with countermeasures in accordance with Brazilian law.
Brad Setser, a former U.S. trade official now with the Council on Foreign Relations, warned that Trump’s actions risk triggering a damaging trade war.
“This shows the danger of placing tariff authority in the hands of a single person,” Setser said. “It’s clearly tied to Lula defeating Trump’s ally Bolsonaro in the last election.”
According to U.S. Census Bureau data, Brazil is America’s 15th-largest trading partner, with two-way trade totaling $92 billion in 2024. Notably, the U.S. recorded a $7.4 billion trade surplus with Brazil that year.
Top U.S. exports to Brazil include commercial aircraft, petroleum products, crude oil, coal, and semiconductors. Meanwhile, Brazil exports crude oil, coffee, semi-finished steel, and pig iron to the United States. While Brazil has not yet implemented a digital services tax, it has proposed legislation to increase regulatory oversight on digital platforms.
Trump also issued similar tariff notices to seven smaller trading partners on August 1. The list included a 20% tariff on Philippine imports, 30% on goods from Sri Lanka, Algeria, Iraq, and Libya, and 25% on products from Brunei and Moldova.
Earlier in the week, Trump announced additional 25% tariffs targeting major U.S. suppliers South Korea and Japan—also set to take effect August 1, unless trade agreements are reached in the meantime.
These aggressive moves come as Trump pledges to expand his long-standing trade war, with looming tariffs on semiconductors and pharmaceuticals. The rapid escalation in trade restrictions has sparked concern among global investors, casting uncertainty over the international economic outlook and stalling business investment decisions.
