Trump Slaps 50% Tariffs on Brazil and Copper Imports in Major Trade War Escalation

In a major escalation of his administration’s aggressive trade strategy, President Donald Trump has signed executive proclamations imposing sweeping 50% tariffs on imports from Brazil as well as on semi‑finished copper products and derivatives, effective August 1, according to a report published by CNN on Wednesday.

Citing national security for imposing copper tariffs, Trump stressed that copper was essential for the Defense Department, electric vehicles, data centers and missile systems, among other things. He also claimed that Brazil’s legal proceedings against former president Jair Bolsonaro were a politically motivated “witch hunt”, The Guardian reported.

Brazil Rebukes US Over Trade Sanctions

Meanwhile, Brazilian President Luiz Inácio Lula da Silva hit back, vowing reciprocal tariffs under the country’s new economic reciprocity law, as reported by CNBC. “Brazil is a sovereign country with independent institutions that will not accept being tutored by anyone,” Lula da Silva asserted in a post on X.

The latest US announcement has triggered strong reactions in Brazil, with calls for retaliation, including tariffs on American goods. Lula reportedly criticised the US for targetting Brazil using what he claimed was misinformation about trade deficits.

Economic Fallout Ahead

The copper tariff, in particular, already appears to be shaking global markets. Analysts warn that the 50% duty will raise costs across industries, right from housing and autos to electronics and energy. Meanwhile, Prices of copper reportedly spiked nearly 13% as traders anticipated the impact.

A key concern that has traders worried is that the US imports over half of its copper, with most of it sourced from Chile. Imposing steep tariffs, experts say, could raise downstream prices and delay the shift toward electric vehicles and renewable infrastructure.

Political Undertones in a Diplomatic Clash

Observers say the Brazil tariff isn’t about trade deficits but reflects political pressure tied to Bolsonaro’s public legal battles. Trump says the US has run a trade deficit with Brazil, though official statistics show a $7.4 billion American surplus in 2024, according to a Financial Times report.

Brazil, meanwhile, appears to have shifted toward diversification – leaning on ties with the EU, China and BRICS partners rather than the US alone. Lula’s advisers, reports suggest, have termed the dispute as symbolic of Brazil’s refusal to accept coercion in international affairs.

Tariff Extensions on the Horizon

Trump has threatened elevated tariffs – ranging 20% to 50% – on over 20 other countries, urging trading partners to negotiate bilateral deals to avoid sanctions. Some countries have already been sent letters ahead of an August 1 deadline.

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