Washington (AFP) – President Donald Trump said Tuesday that he would not extend an August 1 deadline for higher US tariffs to take effect on dozens of economies, while announcing plans for a separate 50 percent duty on copper imports. The copper levy would broaden a slate of sector-specific actions Trump has imposed since returning to the White House, and sent prices for the metal soaring.
“Today we’re doing copper,” the president told a cabinet meeting Tuesday. “I believe the tariff on copper, we’re going to make it 50 percent.” Commerce Secretary Howard Lutnick told CNBC shortly afterward that the rate will likely be implemented at the end of July or on August 1. Trump also said Washington would soon make an announcement on pharmaceuticals, but officials would allow manufacturers time to relocate their operations into the country.
“We’re going to give people about a year, a year and a half to come in, and after that, they’re going to be tariffed,” he said. “They’re going to be tariffed at a very, very high rate, like 200 percent.” In recent months, Trump has ordered probes into imports of copper, pharmaceuticals, lumber, semiconductors, and critical minerals that could lead to further levies. Lutnick told CNBC that the studies on pharmaceuticals and semiconductors would be completed by the end of the month, with Trump to set policies thereafter.
Beyond tariffs impacting sectors, Trump also slapped a sweeping 10 percent tariff on goods from almost all trading partners in April. These would have swiftly risen to steeper levels for dozens of economies including the European Union and Japan, but Trump paused their implementation until July 9. The president this week again delayed their reimposition, pushing it to August 1 while insisting that “no extensions will be granted.”
In a push for further trade deals, Trump sent a first batch of letters to more than a dozen partners on Monday, including key US allies Japan and South Korea. Products from both countries would be hit with 25 percent duties, Trump wrote in near-identical documents to leaders in Tokyo and Seoul. Indonesia, Bangladesh, Thailand, South Africa, and Malaysia were among other countries facing duties between 25 percent and 40 percent.
Most countries receiving the letters so far saw US tariffs at similar or unchanged rates from those threatened in April, although some like Laos and Cambodia received notably lower levels. In his messages to foreign leaders, Trump warned of further escalation if there was retaliation against his levies. Lutnick said 15 to 20 more letters could go out in the next two days. Trump added Tuesday that members of the emerging BRICS bloc of nations will face an added 10 percent tariff.
The Trump administration is under pressure to show results after promising a flurry of deals following its tariff threats. For now, Trump insists that “big money will start coming in on August 1.” Treasury Secretary Scott Bessent added at the cabinet meeting that tariff income could exceed $300 billion by year-end. Trump said Washington was “probably two days off” from sending the EU a letter setting out an updated tariff rate for the bloc.
“They’re very tough, but now they’re being very nice to us,” he said. So far, Washington has only struck two pacts, with Britain and Vietnam, besides an agreement to dial back tit-for-tat levies with China. Lutnick expects to start a “bigger trade conversation” between Washington and Beijing in early August, alongside Bessent and trade envoy Jamieson Greer. And US talks with Britain are ongoing over steel and aluminum.
Trump recently doubled tariffs on imports of both metals to 50 percent while exempting the UK from this increase. But Washington could double the levy on UK steel and aluminum too starting Wednesday, if it determined that London had not complied with the terms of their deal. In threatening tariff hikes on various countries, Trump cites a lack of reciprocity in trading ties.
© 2024 AFP
