Trump Tariff Highlights: Indian team to soon visit Washington again; Brazil vows to respond with ‘reciprocity’ after 50% tariff

Oil prices fell by around 2% on Thursday, as investors weighed the potential impact of U.S. President Donald Trump’s tariffs on global economic growth.

Brent crude futures were down $1.42, or 2.02%, at $68.77 a barrel by 1327 GMT. U.S. West Texas Intermediate crude fell $1.61, or 2.35%, to $66.77 a barrel.

On Wednesday, Trump threatened Brazil, Latin America’s largest economy, with a punitive 50% tariff on exports to the U.S., after a public dispute with his Brazilian counterpart Luiz Inacio Lula da Silva.

Brazilian President Luiz Inacio Lula da Silva has indicated that his country would respond to the newly announced 50% tariff rate on its exports to the United States with ‘reciprocity’. He also cited a recently adopted Brazilian law that authorises the government to take proportional countermeasures.

German exporters do not want a deal at any price in the trade conflict with the United States, said Dirk Jandura, head of the BGA trade lobby.

“Our interests must be reflected in an agreement with the U.S.,” Jandura said on Thursday in Berlin. “We need a fair deal for the whole of Europe. It must not be concluded at any price.”

The European Commission aims to reach a trade agreement outline with the U.S. in the coming days, ahead of the August 1 deadline set by President Donald Trump for broad tariff increases.

President Donald Trump announced on Wednesday a new 50% tariff on copper to start on August 1 and threatened a 50% tariff on exports to the U.S. from Brazil. He also issued tariff notices to seven minor trading partners.

U.S-listed shares of Brazilian firms fell in premarket trading, with Petrobras and Itau Unibanco down 1.3% each. Banco Santander lost 2.1%.

Yet, several countries are still waiting for official word from the White House, as investors keep a close eye on the evolving trade negotiations.

Hopes are also high for a breakthrough with India, with both Trump and top officials hinting a deal is within reach, while talks with the European Union inch closer to a framework agreement.

An Indian commerce ministry team will soon visit Washington for another round of talks on the proposed trade agreement with the US to iron out differences in sectors, like agriculture and automobiles, a government official said on Thursday.

“We are not differentiating between an interim or the first phase of the bilateral trade agreement. We are negotiating a complete deal. Whatever will be finished, we can package it as an interim deal and for the rest, talks will continue,” the official said.

The dates for the US visit have not been finalised yet. However, according to sources, the team is expected to visit Washington next week.

“We are engaged both physically and virtually with the US on the pact,” the official, who did not wish to be named, said.

Sri Lanka’s main opposition has criticised the government over the US’ decision to impose a 30% tariff on all goods imported from the island nation. The opposition blamed the hike on weak negotiation efforts. The US sent official letters to the leaders of seven countries on Wednesday, including Sri Lanka, announcing the new trade tariffs as part of a larger trade policy shift.

Opposition leader Sajith Premadasa responded strongly, saying the 30% tariff reflects the consequences of failed negotiations. Sri Lanka had already held two rounds of talks with the US to try and avoid or reduce the tariff, but those efforts were unsuccessful.

India could gain from the United States’ new tariff policy, as Washington is likely to impose lower tariffs on India compared to many other countries in the Asia-Pacific region, a report by Arihant Capital has said. According to the report, India is in a strong position to receive more foreign investment and boost its manufacturing sector as global trade patterns begin to shift. The report mentioned that while countries like Cambodia and Vietnam may face higher tariffs, India could benefit from trade and investment moving in its direction. This advantage is further supported by ongoing trade agreements between India and the U.S.

The Philippines has expressed concern over the United States’ decision to put a 20% tariff on goods coming from the country. However, it will continue talks with the U.S., the country’s economic affairs minister said on Thursday. Secretary Frederick Go told reporters that the Philippines is still committed to working with the US to reach a deal, possibly a free trade agreement. Philippine officials are set to visit the U.S. next week to continue discussions with American officials.

Brazilian President Luiz Inácio Lula da Silva said on Wednesday that the 50% tariffs announced by US President Donald Trump would activate Brazil’s economic reciprocity law. This law allows Brazil to suspend trade, investment, and intellectual property deals with countries that hurt its ability to compete in the global market. “Brazil is a sovereign country with independent institutions that will not accept being taken for granted by anyone,” Lula said. In a strong statement, he defended Brazil’s legal system and pointed out that the US has had a trade surplus of more than $410 billion with Brazil over the past 15 years. Trump introduced the 50% tariffs on Brazilian goods, saying it was because of how Brazil is treating its former President Jair Bolsonaro. Bolsonaro is currently on trial for allegedly trying to overturn the results of the 2022 election.

US Secretary of State Marco Rubio will visit Asia for the first time since taking office, meeting Southeast Asian leaders on Thursday. He aims to assure them that the region still matters to Washington, even though Trump has included it in his global tariff push. Rubio will meet with foreign ministers from the 10 countries that make up the Association of Southeast Asian Nations (ASEAN) in Kuala Lumpur. He is also expected to hold separate talks with Russian Foreign Minister Sergei Lavrov, who is also in the Malaysian capital, the US State Department said.

Trump on Wednesday announced fresh 50% tariff on copper, which will come into effect from August 1, in a bid to boost local production in an industry that plays an important role in defense, electronics, and car manufacturing. This is the latest in a series of tariffs Trump has introduced on specific sectors, including steel and aluminum. However, economists warn that these measures could lead to higher prices for US consumers.

US President Donald Trump on Wednesday announced a sharp 50% tariff on all goods that are imported from Brazil. The development comes shortly after a diplomatic row with Brazilian Luiz Inácio Lula da Silva.

Lula has reportedly referred to Trump as an unwanted ’emperor’.

POTUS releases letter for Sri Lanka outlining 30% tairff

President Claudia Sheinbaum said on Wednesday Mexico could redirect the copper it typically sends to the U.S. to avoid tariffs from the Trump administration, while her Chilean counterpart Gabriel Boric said he had yet to hear from the U.S. and called for “official” communication.

US President Donald Trump said on Tuesday he would soon announce a 50% tariff on copper imports, which make up nearly half of the metal consumed in the country, as part of his bid to build up domestic production. The news is likely to set off a scramble to ship copper into the United States before tariffs go into effect, expected by the end of July or August 1.

Chile is the top refined copper supplier to the U.S., and Mexico ranks fifth. On the flip side, the United States represents a relatively small amount of Mexican and Chilean copper exports, which in both cases go mainly to China.

President Donald Trump meets with leaders from five African nations on Wednesday as the US leader ramps up a trade war that threatens developing nations that depend on trade with the world’s largest economy. Trump is hosting leaders from Gabon, Guinea-Bissau, Liberia, Mauritania and Senegal for a discussion and lunch at the White House. An official said the discussions will focus on business opportunities.

US President Donald Trump issued a fresh tranche of tariff letters via Truth Social on Wednesday morning. He has outlined a 30% levy for Algeria, Iraq and Libya.

US President Donald Trump has announced 25% tariffs for Brunei and Moldova.

Trump announces 20% tariffs for Philippines

Mexico’s President Claudia Sheinbaum said on Wednesday “let’s wait” when asked about US President Donald Trump’s 50% tariff on copper imports.

“We are going to make every effort on our side”, Sheinbaum added about the tariffs during her regular morning press conference.

“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!” Trump wrote on Truth Social.

US copper futures widened their premium to the London benchmark on Wednesday, reflecting US President Donald Trump’s plan to impose a 50% import tariff on the metal.

“I believe the tariff on copper, we’re going to make 50%,” Trump told reporters at a White House cabinet meeting on Tuesday. Commerce Secretary Howard Lutnick later said the tariff was likely to be in place by August 1 or even earlier.

The most active COMEX copper futures contract’s premium to the London Metal Exchange three-month contract that serves as the global benchmark jumped to 27% on Wednesday, up from 13% before Trump’s announcement.

“This is a watershed moment for the copper market in 2025 as the imminent flagged tariff implementation should abruptly close the window for further significant U.S.-bound copper shipments,” Citi analysts said in a note.

LME copper fell 1.6% to $9,635 a metric ton in official open-outcry trading after touching $9,553.5 for its lowest since June 13. COMEX copper hit a record high on Tuesday but was last down 2.1% at $5.568 per pound.

The COMEX-LME arbitrage remained below the planned 50% rate as the market awaited more clarity on what copper products and suppliers the import tariff would affect.

Trump said late on Tuesday that “a minimum of seven” tariff notices would be released on Wednesday morning, and more in the afternoon. He gave no other details in his Truth Social post.

The threat came a day after he pressured 14 trading partners, including powerhouse U.S. suppliers South Korea and Japan, with tariff letters imposing levies of 25% and upwards to take effect from August 1.

The European Union said on Wednesday that it was working on sealing a trade deal with the United States by the end of the month.

Trump had earlier said he would “probably” tell the EU within two days what rate it could expect for its exports to the U.S., adding that the 27-nation EU had become much more cooperative.

“They treated us very badly until recently, and now they’re treating us very nicely. It’s like a different world, actually,” he said.

European Commission President Ursula von der Leyen gave a guarded response.

“We stick to our principles, we defend our interests, we continue to work in good faith, and we get ready for all scenarios,” von der Leyen told the European Parliament.

A European Commission spokesperson said that the EU aimed to reach a trade deal before August 1, potentially even in the coming days.

However, Italian Economy Minister Giancarlo Giorgetti warned that talks between the two sides were “very complicated” and could continue right up to the deadline.

Commenting back on Trump’s remarks over US-China relations, the Chinese Foreign Ministry said that they approach US relations with “mutual respect, peaceful coexistence, and win-win cooperation”.

US Prez Trump is set to host a lunch at the White House on Wednesday for five African leaders, with trade and economic cooperation expected to be key topics of discussion.

The invited leaders from Senegal, Liberia, Guinea-Bissau, Mauritania, and Gabon, all represent countries along Africa’s Atlantic coast. The meeting is taking place at Trump’s invitation and is likely to cover a range of issues beyond commerce as well, reported AFP.

Kai Wang, Asia equity strategist at Morningstar, believes Chinese pharmaceutical firms are unlikely to be seriously affected by Trump’s latest proposed tariffs on the sector, MKTNews reported. The new tariffs are expected to focus on generic drugs, but most of China’s generic drug production is sold within the country, Wang pointed out. In contrast, South Korea may see a bigger impact from the policy in the Asian region, while India, a major supplier of generic drugs to the US, could also be significantly affected.

Wang also noted that the recent rise in pharma stocks listed in Hong Kong is more likely due to a recovery from the previous day’s drop and investor relief that the tariffs may have limited impact.

Vietnam is close to securing a trade agreement with the United States that would lower tariffs on its exports from a potential 46% to around 20%, MKTNews reported. The move comes as part of the country’s efforts to protect key industries such as electronics, automobiles, and textiles, from steep US duties, and to stay competitive in a challenging global economy. To reduce its reliance on a few key markets, Vietnam is also actively looking to sign new free trade agreements with other countries. Officials say this will help spread export risk and create more stable growth opportunities.

Commenting on Trump’s tariffs, Malaysia’s trade minister said,

“don’t know why tariff rate was raised from initial 24%”. He added that it is a question to as US trade representatives.

India may soon secure a better reciprocal tariff rate with the US, according to a report by Nomura economists. While many countries have already received notices from the U.S. about new tariffs starting August 1, India hasn’t received one yet. This suggests that talks between the two sides are going well and a positive outcome could be announced shortly, the report says. At present, India faces a 26% reciprocal tariff. Nomura believes that the U.S. may offer a lower rate because India has made key trade concessions—such as allowing greater access to its agriculture sector, cutting tariffs on industrial goods like automobiles, and stepping up purchases of U.S. liquefied natural gas (LNG).

Trump took to Truth Social on July 9 and shared that he will be releasing “a minimum of 7 Countries having to do with trade” today. He also said that there will be “additional number of Countries being released in the afternoon.”