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Trump tariff pressure campaign takes hard-line shift with copper in the crosshairs

Published: 09 Jul. 2025, 19:38 Updated: 09 Jul. 2025, 19:57

U.S. President Donald Trump, left, speaks during a cabinet meeting at the White House in Washington, D.C., on July 8 as Defense Secretary Pete Hegseth looks on. [REUTERS/YONHAP]

U.S. President Donald Trump on Tuesday warned that tariffs on semiconductors — one of Korea’s key exports — could be announced as early as the end of this month. Trump also signaled a 50 percent tariff on copper to take effect Aug. 1 and suggested pharmaceutical tariffs could reach as high as 200 percent.

Following his Monday release of “reciprocal tariff letters” to 14 countries, with Korea and Japan subject to 25 percent each, Trump expanded his pressure campaign by introducing item-specific tariffs.

Trump emphasized that the newly announced tariff schedule would not be delayed again. This marked a shift from his statement just a day earlier, when he said the Aug. 1 implementation date was “firm, but not 100 percent firm," suggesting flexibility. Analysts say the firm tone is a reaction to criticism that the president tends to back down from threats, a perception mocked by the acronym “TACO” for "Trump always chickens out."

The Wall Street Journal reported on Tuesday that the one-month delay in implementing reciprocal tariffs was prompted by advisers, including Treasury Secretary Scott Bessent, who said “some deals were close but needed more time.”

Trump “deliberated in phone calls and private conversations with allies from his private golf club in Bedminster, New Jersey, according to people familiar with the outreach,” according to the newspaper.

White House Press Secretary Karoline Leavitt shows a signed letter on tariffs from U.S. President Donald Trump to South Korean President Lee Jae Myung during a press briefing at the White House in Washington on July 7. [REUTERS/YONHAP]

Still, presiding over a cabinet meeting on Tuesday, Trump struck a hard-line tone.

“We’re going to give people about a year, a year and a half, to come in,” he said. “And after that, they’re going to be tariffed if they have to bring the pharmaceuticals into the country, the drugs and other things, into the country. They’re going to be tariffed at a very, very high rate, like 200 percent. We’ll give them a certain period of time to get their act together.”

He also said copper tariffs would be set at 50 percent, mirroring existing tariffs on steel and aluminum.

U.S. Commerce Secretary Howard Lutnick attends a cabinet meeting at the White House in Washington, D.C., on July 8. [EPA/YONHAP]

Copper tariffs likely by end of July or start of August

Semiconductors, copper and pharmaceuticals are all currently under review for national security-related tariffs under Section 232 of the Trade Expansion Act. The law allows the U.S. commerce secretary to investigate whether imports threaten national security and report the findings to the president, who must decide on appropriate measures — such as tariffs — within 90 days.

“So, copper is finished,” Commerce Secretary Howard Lutnick told CNBC on Tuesday. “We have done our study. We have handed the study over to the president. The president knows that he has the ability, since we have studied the market of copper, to set the market tariff for copper."

“That will come out, but then [the tariffs for] copper will be set, likely to be put into place the end of July, maybe Aug. 1,” said Lutnick.

U.S. President Donald Trump's letter posted on his social media platform Truth Social on July 7, notifying that a 25 percent reciprocal tariff will be imposed on all Korean products starting Aug. 1. [SCREEN CAPTURE]

Semiconductor review to wrap up this month

Lutnick also said that investigations into the national security implications of pharmaceutical and semiconductor imports are expected to conclude by the end of this month, at which point Trump will decide on appropriate actions.

This timeline suggests that the White House may announce semiconductor tariffs before the month is over. In the letters sent Monday to Korea, Japan and others, Trump proposed a 25 percent reciprocal tariff rate and noted the possibility of adjustments depending on negotiation outcomes.

However, the letter said the rate was “separate from all Sectoral tariffs,” implying less room for compromise. His administration already imposes 50 percent tariffs on steel and aluminum and 25 percent on automobiles. Semiconductors, pharmaceuticals and copper may now be added to that list.

Copper piping is for sale at employee-owned Clark Devon Hardware in Chicago on April 2. [AP/YONHAP]

Copper tariffs spark supply chain concerns

Korea exported $573.66 million worth of copper to the United States last year, just 0.45 percent of Korea's total exports to the United States, meaning the direct impact of a 50 percent copper tariff may be limited.

Still, copper plays a vital role in the electronics, construction and IT sectors, and high tariffs could heighten global supply chain concerns. Following news of Trump’s remarks, copper futures surged 13.1 percent from the previous day, marking the highest single-day increase since 1989.

If the 50 percent tariff is implemented, U.S. factories that depend heavily on imported refined copper could suffer. According to the U.S. Geological Survey, the United States imports about 1 million tons of refined copper annually — roughly half its consumption — with over 90 percent coming from Chile, Canada and Peru.

BY KIM HYOUNG-GU [[email protected]]