In early July 2025, President Trump announced a 50% tariff on copper imports, set to take effect by August 1, followed by a warning that pharmaceutical tariffs may climb to 200–250% over the next year to 18 months. This shift builds on prior tariffs on steel and aluminum and is part of broader efforts to reinforce U.S. supply chains and reduce reliance on foreign sources. Copper is essential for EVs, infrastructure, and electronics. Meanwhile, drugmakers have been granted a grace period to relocate or adjust operations before steep tariffs kick in.
Price shock in copper markets, strain on healthcare supply
After the announcement, U.S. copper futures spiked by approximately 13–17%, marking one of the metal’s biggest single-day gains and prompting rally in copper-mining shares. Analysts warn that sectors manufacturing hardware, appliances, and green tech could pick up higher costs which may ultimately be passed to consumers. At the same time, pharmaceutical suppliers—especially from India and China, which account for a substantial portion of U.S. drug imports—face strategic upheaval.
U.S.–EU pact limits tariffs but hinges on massive investments
On July 27, the U.S. and EU finalized a framework trade deal capping most tariffs at 15%, significantly lower than Trump’s earlier threat of 30%. In return, the EU pledged $600 billion in U.S. investment and $750 billion in energy purchases. Failure to comply may trigger tariffs up to 35%, according to Trump. Some sectors—including aerospace, generics, and semiconductor equipment—are designated for zero tariffs under exemption lists.
Investors seek clarity amid persistent execution ambiguity
Markets initially welcomed the tariff cap as a stabilizing force. However, uncertainty persists about enforcement details, including timing, scope, and monitoring of EU commitments. Analysts note that unresolved execution plans for copper and pharma tariffs may weigh on investor sentiment and prolong volatility.
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Information source: finance.yahoo.com | theguardian.com | bbc.com | ft.com