On a normal Tuesday in Pyeongtaek, South Korea, an array of vehicles awaited exportation on July 8, 2025. The global economic chessboard had tilted again, as US President Trump ignited a new phase of his international trade battles. He targeted a variety of nations with significant ‘reciprocal tariffs,’ set to take effect on the first of August. Trump also broadened the list of goods subject to increased tariffs, an announcement that would certainly stir international waters.
During a pre-cabinet meeting press briefing, President Trump expanded on the tariff situation, specifying a new focus on copper. A hefty 50 percent tariff on the metal was indicated, a decision likely to affect industries far and wide. Furthermore, he hinted at a possible 200 percent levy on pharmaceuticals spread over eighteen months, implying the scope of his trade war was growing to include other industries under the guise of ‘national security.’
These selective levies on particular products would be enacted under Section 232 of the 1962 Trade Expansion Act. Simultaneously, the general tariffs affecting specific countries would be imposed using the powers provided by the International Emergency Economic Powers Act of 1977. Every action seemed to underline Trump’s hard stance on international trade matters.
Pharmaceutical companies, Trump stated, would have eighteen months to ‘get on board,’ before facing a potentially unfortunate fate. The impending tariffs could skyrocket to as high as 200 percent, a significant shock for the industry. In contrast, the copper tariffs would not enjoy such a grace period, instead facing immediate imposition. The proposal surprised analysts at JPMorgan, who only expected a hike of 25 percent for refined metals.
Copper is prevalent in numerous sectors, namely, construction and electronics, where it serves as a primary ingredient for piping. The United States primarily sources the metal from Chile, with Canada and Mexico trailing closely behind. This aphoristic saying depicts a fundamental shift in international trade systems and national responsiveness.
Pierre Gratton, at the helm of the Mining Association of Canada, voiced his concerns to the Financial Times regarding billions’ worth of copper exports to the US. He highlighted the integrated, interdependent trade ecosystem of North America. With limited refining capacity and smelters, the US would inflict considerable harm on its own manufacturing sector with such tariffs, probably more than the alleged national security benefits it hoped to gain.
The ramifications of previous tariffs lent credence to Gratton’s concerns. A retrospective analysis of steel tariff increases between 2018 and 2020 confirmed that the steel industry’s gains were greatly outweighed by the losses suffered in other sectors. Encompassing the auto manufacturing, construction, machinery and tools, and food and beverage packaging industries, job losses totaled around 75,000 due to inflated steel prices.
Trump remained steadfast, signaling that the rescheduled implementation of reciprocal tariffs would, in fact, occur on August 1 regardless of global controversy. Emphasizing his inflexible stance, Trump declared no changes or extensions would be permitted, thus intensifying the uncertainty surrounding the international trade climate.
Several economies, especially Japan, South Korea, Southeast Asian countries, and various smaller, financially weaker nations find themselves destabilized by the tariffs. Faced with the urgency of the impending changes, they’re attempting to negotiate last-minute deals to alleviate the impact. As he sent out notice letters to the affected countries, Trump cryptically equated the letters to ‘deals.’
Among the economies bracing for impact, the European Union and India have yet to broker ‘deals.’ Trump stated some progress had been achieved with the EU, but resistance to taxes on US tech firms could incite additional tariff announcements in the imminent future. Even though negotiations with India seemed promising, India would still face a 10 percent tariff due to its affiliation with the BRICS group.
This economic collective, including Brazil, Russia, India, China, and South Africa and now extended to include 11 nations, is in Trump’s crosshairs due to initiatives circumventing the dollar in international trade. Still, no standing deals with two significant industrial entities — South Korea, the world’s 13th largest economy, and Japan, the fourth-largest — are in place. The urgent need for solutions fuels the growing trade debacle.
South Korea’s trade ministry took a conciliatory stance, expressing their commitment to finding mutually beneficial solutions. Meanwhile, the newly elected president, Lee Jae Myung, lamented the confusion surrounding the US’s exact demands. The prevailing trade agreement from 2012 could hardly offer additional concessions, having already removed most tariffs on US goods.
Japan felt the brunt of this unexpected economic shockwave, predicting an easier pathway toward trade concessions based on previous dealings under the inaugural Trump administration. However, multiple negotiation rounds haven’t yielded desired outcomes, primarily due to Japan’s insistence on the elimination of auto tariffs and negation on increased US rice exports.
Shigeru Ishiba, the prime minister of Japan, remains reluctant to sacrifice support from small rice farmers necessary for his politically unstable Liberal Democratic Party. This hesitation has been met with opposition from key factions of industry, resulting in Tokyo negotiating from a weaker position.
This intensifying trade conflict has conveyed far-reaching consequences even at this nascent stage. Japanese exports to the US saw an 11 percent decrease in May, compared to the previous year’s figures. The auto industry, too, took a severe hit, with the transport equipment sector recording an 8.5 percent dip.
The ripple effects are felt across the globe in the Bank of Japan, which has dialed back its growth forecasts owing to what it referred to as an ‘unprecedented level’ of imposed tariffs. The potential cost to the auto industry is anticipated to be in the billions. In South Korea, Samsung Electronics reported a 56 percent decrease in profits for Q2 compared to the previous year, while LG Electronics saw a near 47 percent drop.
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