More tariffs & warning to BRICS (including India): Key takeaways from Trump's new threats

Time of India

3 days ago

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US President Donald Trump on Tuesday made some major announcements, ranging from more tariffs on imported copper to additional tariffs on BRICS During the cabinet meeting on July 8, 2025, Trump announced a 50% tariff on imported copper. The new duty is part of a broader effort to expand tariffs across several sectors and trading partners. 'Today we're doing copper,' Trump said during the meeting, pointing to progress in the administration's probe into copper imports.Following the announcement, US copper futures surged over 10%. Copper is widely used in electric vehicles, defense equipment, the power grid, and consumer goods.Trump also warned of fresh duties on imported pharmaceuticals. However, the administration plans to allow time for companies to relocate operations back to the US before enforcement.'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,' Trump said. 'They're going to be tariffed at a very, very high rate, like 200 percent.'Beyond copper and pharma, the administration has launched investigations into imports of semiconductors, critical minerals, and lumber. These probes may lead to further duties in the coming months. Earlier this year, tariffs were already placed on steel, aluminum, and automobile imports, reported Reuters.Trump confirmed that his administration plans to impose a 10% tariff on imports from BRICS nations, which include Brazil, Russia, India, China, and South Africa, along with newer members like Iran and Indonesia. 'Anybody that's in BRICS is getting a 10% charge pretty soon,' he said. 'If they're a member of BRICS, they're going to have to pay a 10% tariff ... and they won't be a member long.'Responding to a question on India's position, Trump said there would be no exemption for New Delhi. 'They (India) have to pay 10 per cent if they're in BRICS because BRICS was set up to hurt us; BRICS was set up to degenerate our dollar,' he said. Trump repeated his claim that BRICS is 'trying to destroy the dollar,' though he added that he does not view the bloc as a serious threat to the USTrump said trade talks with the European Union and China were progressing but added that he could soon send a tariff letter to the EU. 'Probably' within two days, he said, the EU would be informed of the new tariff rate for its exports to the US Despite calling the trade discussions positive, Trump criticized the EU for previously taking advantage of the US on trade.Global markets had a muted response to the announcements. However, US pharmaceutical stocks dipped from their day's highs, while copper prices climbed sharply. According to the Yale Budget Lab, the latest actions raise the effective US tariff rate to 17.6%—the highest since 1934. Goldman Sachs estimated the Monday tariff wave added 1.4 percentage points to the overall rate.In response, several US trade partners began urgent efforts to negotiate. Japan and South Korea, both facing a potential 25% tariff, are pushing for sector-specific concessions. According to a Reuters report, Japanese negotiator Ryosei Akazawa said Tokyo would not compromise its agricultural sector. South Korea confirmed plans to accelerate talks 'to reach a mutually beneficial result.'The European Union, the US's largest bilateral trade partner, is working toward an agreement before August 1, reported Reuters, citing EU sources. German Finance Minister Lars Klingbeil warned of possible retaliation. 'If we don't reach a fair trade deal with the US, the EU is ready to take counter measures,' he told the Bundestag.The Trump administration also unveiled tariff hikes on a range of other countries: 25% on Tunisia, Malaysia, and Kazakhstan; 30% on South Africa, Bosnia and Herzegovina; 32% on Indonesia; 35% on Serbia and Bangladesh; 36% on Cambodia and Thailand; and 40% on Laos and Myanmar.Cambodia called the reduction of its previous 49% tariff rate to 36% a 'big success,' while Bangladesh, a major apparel exporter to the US, expressed concern. Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, said: 'This is absolutely shocking news for us. We were really hoping the tariffs would be somewhere between 10–20%. This will hurt our industry badly.'Trump previously promised '90 deals in 90 days' following his April rollout of country-specific tariffs. As of now, only two agreements—with the United Kingdom and Vietnam—have been finalized. Trump said talks with India are also nearing completion. 'It's about time the United States of America started collecting money from countries that were ripping us off … and laughing behind our back at how stupid we were,' he added.With more announcements expected before August 1, including a potential deal with the EU, the global trade landscape could shift further.Analysts and trade officials are watching closely to see if new levies provoke retaliation or fast-track negotiations.