Wall Street Flat as Investors Await Jackson Hole
Tuesday 19 August 2025
Trump Announces Tariffs on India, Copper & South Korea: July 2025 Update
On 30-31 July 2025, U.S. President Donald Trump unveiled significant tariff measures targeting Indian goods (25%), copper imports (50%), and South Korean products (15% under a new trade agreement). These developments are reshaping global trade dynamics and creating substantial market volatility.
Quick Summary: Key Tariff Changes
25% tariffs on Indian imports - effective 1 August 2025
50% tariffs on semi-finished copper products - raw materials exempt
15% tariffs on South Korean goods - reduced from threatened 25%
Copper futures dropped 19% following the announcement
Mixed equity market reactions amid supply chain concerns
What Are the New Trump Tariffs for August 2025?
India Faces 25% Tariff on All Goods
President Trump imposed a comprehensive 25% tariff on Indian imports, citing:
India's refusal to lower internal trade barriers
Continued defence and energy trade with Russia
Ongoing purchases of Russian oil despite sanctions
Key sectors affected:
Textiles and apparel
Information technology services
Copper’s Facing 50% Tariffs: Details
The 50% tariff specifically targets semi-finished copper products, including:
Copper pipes and tubes
Electrical wiring and cables
Copper alloy products
Important exemptions:
Copper ores and concentrates
Copper cathodes
Copper scrap materials
This targeted approach explains why copper futures initially dropped 19% before partially recovering as traders recognised the limited scope.
Why Is Trump Imposing Tariffs on Copper?
Boost U.S. national security by reducing dependence on foreign copper.
Support the domestic copper industry and reserve more U.S.-produced copper for American manufacturers.
How Does the South Korea Trade Deal Work?
South Korea negotiated a reduced tariff rate through strategic concessions:
Original threat: 25% tariffs
Negotiated rate: 15% tariffs
South Korean commitments: $350 billion U.S. investment over 3.5 years
Energy purchases: Substantial natural gas and oil commitment
(Source: Рeuters)
Tariffs Status
India (all goods)
Tariff: 25%
Effective: 1 August 2025
Confirmed
Copper (semi-finished)
Tariff: 50%
Effective: 1 August 2025
Confirmed
South Korea
Tariff: 15%
Effective: 1 August 2025 Under agreement
Mexico
Tariff: 30%
Effective: 1 August 2025
Threatened
European Union
Tariff: 30%
Effective: 1 August 2025
Threatened
Market Impact of Trump's Tariffs
Commodity Markets
Copper futures experienced immediate volatility:
Initial drop: 19% following announcement
Partial recovery as traders assessed exemptions
Domestic premium eliminated
Supply chain reassessment underway
Equity Market Reactions
Different sectors showed varied responses:
Manufacturing stocks: Mixed reactions based on input cost exposure
Domestic producers: Some gains from import protection expectations
Export-dependent companies: Concerns about retaliation
Currency Market Effects
The announcements affected major currency pairs:
Indian Rupee under pressure
South Korean Won initially weakened
U.S. dollar strength in commodity-linked trades
Trump’s Broader Strategy
Reciprocal tariffs of 10-15% across multiple trading partners
Focus on reducing the U.S. trade deficit
Emphasis on domestic manufacturing under Section 232 (a provision within the Trade Expansion Act of 1962 that grants the U.S. President extraordinary authority to impose tariffs and trade restrictions based on national security concerns).
Conclusion: What's Next for Trump's Trade Policy?
President Trump's latest tariff announcements mark a significant escalation in U.S. trade policy. The 25% Indian tariffs, 50% copper duties, and negotiated 15% South Korean rate demonstrate both the administration's aggressive approach and willingness to negotiate.
Key developments to monitor:
Implementation on 1 August 2025
Potential retaliation from affected countries
Market adaptation and supply chain adjustments
Further negotiations with Mexico and the EU
These measures might continue to reshape global trade patterns while creating ongoing market volatility through August 2025.
* Past performance does not guarantee future results
FAQs:
What tariffs did Trump announce on 31 July 2025?
Trump announced 25% tariffs on all Indian goods, 50% on semi-finished copper products (excluding raw materials and scrap), and 15% on South Korean imports under a new bilateral trade agreement.
When do Trump's new tariffs take effect?
All announced tariffs, including the Indian tariffs, copper duties, and the South Korean agreement, are scheduled to begin on 1 August 2025.
Why is Trump targeting India with tariffs?
The administration cites India's refusal to lower internal trade barriers, continued defence and energy trade with Russia, and ongoing purchases of Russian oil despite international sanctions.
Which copper products are affected by the 50% tariff?
The tariff applies to semi-finished copper products, including pipes, tubes, wiring, and cables. Raw copper ores, concentrates, cathodes, and scrap materials are exempt.
How did markets react to the tariff announcements?
Copper futures dropped nearly 19% initially before partially recovering. Equity markets showed mixed reactions, with some sectors concerned about higher input costs whilst others anticipate domestic production benefits.
Are more countries facing tariffs from Trump?
Yes, Trump has threatened 30% tariffs on Mexico and the European Union starting 1 August 2025 unless new trade agreements are reached. Brazil is already facing 50% tariffs, and the administration plans broader reciprocal tariffs globally.
