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

“Expect another 15-20 letters to go out over the next 2 days,” US Commerce Secretary Howard Lutnick told CNBC.

US President Donald Trump announced plans to impose a 50% tariff on copper imports following a Cabinet address on Tuesday. The move prompted copper futures in New York to surge by 17%, marking the largest intraday gain since 1988.

Trump told his Cabinet on Tuesday that he wanted to hit pharmaceutical imports with tariffs “at a very, very high rate, like 200%.” He also hinted that businesses would have about eighteen months before the new rules take hold.

“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. If they have to bring the pharmaceuticals into the country … they’re going to be tariffed at a very, very high rate, like 200%. We’ll give them a certain period of time to get their act together,” Trump said.

US President Donald Trump has indicated plans to impose tariffs on several items including semiconductors. The POTUS will soon announce a 50% tariff on imported copper. Trump also said that he will make a separate announcement on pharmaceuticals very soon.

“We’re going to be announcing pharmaceuticals, chips and various couple of other things – you know, big ones,” Trump told reporters, while announcing a new tariff rate for copper.

“They have to pay 10% if they’re in BRICs because BRICs was set up to hurt us. BRICs was set up to de-generate our dollar… and take it off as the standard. That’s okay if they want to play that game but I can play that game too,” Donald Trump said.

Trump says some countries will get 60% to 70% tariffs

US President Donald Trump attended a Cabinet meeting on Tuesday morning. Top officials noted that the country had “taken in about $100 billion in tariffs thus far this year”.

“We have received $100 billion in tariffs so far. It could increase to $300 billion by the the end of year,” reiterated US Treasury Secretary Scott Bessent.

Oil prices held near a two-week high on Tuesday as investors assessed the latest developments on U.S. tariffs and a higher than expected increase to OPEC+ output for August.

Brent crude futures was up 29 cents, or 0.4%, to $69.87 a barrel by 11:07 a.m. EDT (1507 GMT), while U.S. West Texas Intermediate (WTI) crude rose 11 cents, or 0.2%, to $68.04.

That put both crude benchmarks on track for their highest closes since June 23 for a second day in a row.

According to multiple reports quoting official sources, a “mini trade deal” between India and the United States is likely to be announced on Tuesday night. The full deal is expected to be finalised after further negotiations between the two countries later this year.

CNBC Awaaz also cited people familiar with the matter to add that the announcement was likely to be made by 10 pm.

Trump has long promised a trade deal with India, but talks have stalled on disagreements over US tariffs on auto components, steel and agricultural goods.

India has signaled it is ready to slash its high tariff rates for the U.S. but has not conceded on Washington’s demands for opening up the agriculture and dairy sectors. New Delhi also has proposed retaliatory duties against the US at the World Trade Organization, saying Washington’s separate 25% tariff on automobiles and some auto parts would affect $2.89 billion of India’s exports.

“As per letters sent to various countries yesterday, in addition to letters that will be sent today, tomorrow, and for the next short period of time, TARIFFS WILL START BEING PAID ON AUGUST 1, 2025. There has been no change to this date, and there will be no change. In other words, all money will be due and payable starting AUGUST 1, 2025 – No extensions will be granted. Thank you for your attention to this matter!” he wrote on Truth Social.

Japan said its tariff negotiator Ryosei Akazawa and U.S. Treasury Secretary Scott Bessent agreed to “continue talks vigorously” in a phone call on Tuesday, after President Donald Trump announced 25% tariffs on Japan starting August 1.

Akazawa and Bessent had “frank and in-depth discussions” in the call that lasted about 30 minutes from 9 p.m.(1200 GMT), Japan’s Cabinet Secretariat said in a statement, adding Japan will continue to explore an agreement that benefits both nations.

Safe-haven gold prices slipped on Tuesday, hurt by some optimism over trade deal between U.S. and its trading partners, while a firmer U.S. dollar and rising Treasury yields added further pressure.

Spot gold eased 0.4% to $3,322.93 per ounce, as of 1325 GMT. U.S. gold futures fell 0.3% to $3,332.30.

The benchmark 10-year note yield hit a more than two-week high, making non-yielding gold less attractive, while dollar edged 0.2% higher.

Powerhouse Asian economies Japan and South Korea said on Tuesday they would try to negotiate with the US to soften the impact of sharply higher tariffs that President Donald Trump now plans to impose from the start of August.

Trump ramped up his trade war again on Monday, telling 14 nations that they would face tariffs ranging from 25% for countries including Japan and South Korea, to 40% for Laos and Myanmar.

However, with the start date pushed back to August 1, those countries were focusing on the new three-week window to press for an easier ride.

Japan wants concessions for its large automobile industry, top trade negotiator Ryosei Akazawa said on Tuesday.

Akazawa said he held a 40-minute phone call with U.S. Commerce Secretary Howard Lutnick in which the two agreed to actively continue negotiations. However, he said he would not sacrifice Japan’s agriculture sector – a powerful political lobby domestically – for the sake of an early deal.

South Korea said it planned to intensify trade talks over the coming weeks “to reach a mutually beneficial result.”

Futures tracking the S&P 500 and the Nasdaq inched higher on Tuesday as investors assessed U.S. President Donald Trump’s latest tariff salvo and pinned their hopes on fresh negotiations with key trading partners to stave off a full-blown trade war.

On Monday, Trump notified 14 nations, including Japan, South Korea, Laos and Myanmar that they would face duties ranging from 25% to 40%.

Wall Street reacted negatively to the news, with the Dow closing nearly 1% lower on Monday, while the S&P 500 and the Nasdaq closed down 0.8% and 0.9%, respectively.

However, the postponement of the tariff implementation to Aug. 1 has offered a negotiation window, an opportunity for economies to work out favorable terms to soften the blow of steep levies.

At 07:01 a.m. ET, Dow E-minis were down 36 points, or 0.08%, S&P 500 E-minis were up 7.5 points, or 0.12%, and Nasdaq 100 E-minis were up 58.25 points, or 0.25%.

Among the harshest penalties: Laos and Myanmar are each set to face 40 percent tariffs, followed closely by Cambodia and Thailand at 36 percent. Bangladesh and Serbia are in line for 35 percent duties, while other countries, including Indonesia, South Africa, and several Asian and Eastern European economies, will also face steep hikes ranging from 25 to 32 percent.

Read More: Trump Tariffs: These countries are the worst hit after release of presidential tariff letters

The Federation of Thai Industries estimated on Tuesday that damage to Thai exports could reach 800 billion to 900 billion baht ($24.5 billion to $27.6 billion) from the 36% US tariffs.

South African President Cyril Ramaphosa pushed back against U.S. President Donald Trump’s imposition of a 30% tariff, saying that it was based on an inaccurate understanding of the two countries’ trade and that negotiations with the U.S. would continue. Trump ramped up the trade war he started in April by telling 14 countries including South Africa on Monday that they face sharply higher “reciprocal” tariffs from August 1. South Africa has been trying to negotiate a trade deal with the U.S. since May, but it has yet to agree terms.

“South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data,” Ramaphosa said in a statement late on Monday.

He said South Africa’s interpretation was that its average tariff on imported goods was 7.6% and that 77% of U.S. goods face no tariffs in his country.

Ramaphosa said it was positive that Trump had said the 30% tariff could be modified depending on the outcome of trade talks, and he urged South African companies to seek new export markets in the meantime.

The Deputy Prime Minister of Cambodia thanked US President Donald Trump for reducing tariff rates on Tuesday.

“Reduction in US tariff from 49% to 36% a big success for Cambodia in the first negotiation phase. We’re prepared for more US talks to negotiate further tariff reduction,” the top official said.

Malaysia’s trade ministry on Tuesday said a 25% tariff rate on its exports to the United States was not on top of an existing base tariff of 10% imposed by Washington, clarifying earlier remarks by the country’s plantations and commodities minister Johari Abdul Ghani.

Citing Malaysia’s trade minister, Johari had said the 25% rate was in addition to the baseline tariff introduced after a 90-day pause by the United States on the implementation of a previous levy, pending negotiations.

“The current tariff is 10%. Effective 1 August, if we failed to conclude negotiations, we will be imposed with 25% only. NOT 25% + 10%,” the trade ministry told Reuters

The executive director of the International Trade Centre told reporters in Geneva that the tariffs would have an impact on the US economy in the long run. Pamela Coke-Hamilton also said that a perfect storm was brewing as trade becomes more unpredictable and aid shrinks.

“This move actually extends the period of uncertainty, undermining long-term investment and business contracts, and creating further uncertainty and instability,” she said.

Mini India-US trade deal to be announced at 10 pm

The pound rose on Tuesday, gaining against the likes of the yen after the U.S. announced 25% tariffs on imports from Japan and South Korea, as investors gravitated towards markets that are at less risk of being hit by hefty duties.

US President Donald Trump on Monday wrote to 14 countries, from major suppliers like Japan and South Korea to minor trade players, warning they face sharply higher tariffs from a new deadline of August 1 unless they strike fresh trade deals.

Sterling rose 0.3% to $1.3645, bringing gains for the year so far to 9.1% as it heads for its strongest yearly performance against the dollar since 2017.

Against the yen the pound was up 0.3% at nearly 199.14 yen, around its highest since last November. The Korean won rose by 0.35% to 1,863 to the pound, recovering from the previous day’s selloff.

Britain is the only major economy so far with a US trade deal in the bag, albeit limited in scope, which means the focus for investors is squarely on the UK’s economic and fiscal backdrop.

(via Reuters)

The Chinese Foreign Ministry on Tuesday said that “there are no winners in tariff war”. On US Treasury Secretary to meet Chinese officials in coming weeks, the Ministry said that they have referred inquiry to relevant authorities, reported MKTNews.

According to Chris Beauchamp, chief market analyst at IG, US tariffs no longer seem to surprise the markets, reported MKTNews. Recent tariff announcements haven’t caused much of a reaction, which shows that investors may be getting used to them—something that could become risky if it leads to overconfidence. However, Trump’s openness to keep talking about trade has helped ease some of the worries caused by the tariff threats. Beauchamp said it seems like the administration isn’t fully committed to pushing the tariffs aggressively. While the situation might lead to more trade talks, the markets are mostly focused on what happens with South Korea and Japan.

South Korean stocks saw their biggest one-day jump in two weeks on Tuesday after US President Donald Trump extended a pause on new tariffs. This raised hopes for a possible trade deal. The main stock index, KOSPI, ended the day 1.81% higher, gaining 55.48 points to close at 3,114.95. This was the biggest daily percentage increase since June 24.

Southeast Asia’s largest economies moved on Tuesday to ramp up trade talks with the United States after facing steep new tariffs, even after making last-minute offers to increase imports and lower duties on American goods, reported Reuters. The region, which depends heavily on exports and manufacturing, has been among the hardest hit by President Donald Trump’s broad tariff measures. The combined economies of these nations are worth over $3.8 trillion, with some benefiting in recent years from global supply chains shifting away from China.

US President Donald Trump is expected to make the final decision on the India-US trade deal. As per a report by CNBC, India has already submitted what it considers a fair and final offer. The proposal will now be reviewed by the US President. India’s offer covers goods trade valued between $150 billion and $200 billion between the two nations. It is now up to US officials to decide whether they want to keep negotiating or accept the deal in its current form. India is unlikely to make any additional concessions at this stage.

Commenting on policy, South Korea’s presidential advisor has said that national interests are more important than swift consultations with US. Trump has slapped S Korea with 25% tariff on Monday. The tariffs will come into effect on Aug 1.

The Reserve Bank of Australia said that although it’s still unclear how far the US tariffs will go or how other countries will respond, financial markets have recovered. This is because investors believe the worst-case scenarios are not likely to happen.