Trump shocks market again, with 50% tariff on copper; pharmaceuticals, chips maybe next

Countries including South Korea have a little more than 3 weeks to reach tariff deals with the U.S.

Meanwhile, the Trump administration is seeking to dump more tariffs on items like copper and pharmaceuticals.

Park Jun-han has the details.

On Tuesday, U.S. President Donald Trump announced a plan to impose a 50% tariff on copper imports, prompting markets to push copper prices to a record high.

"We did steel, as you know, they're 50%, we did aluminum 50%, lumber just came out. And we did cars and now today we're doing copper. I believe the tariff on copper, we're going to make it 50%."

After Trump's announcement, copper prices jumped to a record high, ending the trading day up 13-point-12 percent — the largest one-day gain since 1989 — at approximately 5-point-69 U.S. dollars per pound.

According to the U.S. Geological Survey, the U.S. imports about 50% of the refined copper it uses each year.

Over 90% of copper imports, roughly 1 million tons, come from Chile, Canada and Peru.

While the Trump administration aims to revive domestic copper production, the new tariffs are likely to raise costs for American manufacturers.

On the same day, Trump hinted at tariffs of up to 200% on pharmaceuticals, along with possible duties on semiconductors that could take effect by late July.

A market analyst noted that while the market currently views the impact as limited, it could come under pressure if the proposed chip tariffs exceed expectations.

"The impact of the tariffs has not yet been significant, as South Korea has already built — or is in the process of building — semiconductor factories in the U.S., and the specific tariff rate has yet to be announced. However, if a high rate is imposed, it will inevitably affect the Korean semiconductor industry and the stock market."

Trump's sector-specific tariff plan, based on Section 232 of the Trade Expansion Act, which allows the president to restrict imports that threaten national security, came a day after he sent tariff letters to 14 trading partners,

including South Korea, outlining new tariff rates effective August 1.

Trump is set to send letters to 15 to 20 more countries in the coming days.

Park Jun-han, Arirang News.