U.S. President Donald Trump has stirred up global trade once again. On Wednesday, he signed an executive order imposing a sweeping 50% tariff on all copper imports and goods from Brazil, marking one of his most aggressive trade moves since returning to the White House.

Brazilian Exports in the Crosshairs, Exceptions Offer Little Relief

The tariffs on Brazilian products will take effect in seven days, but they are already rattling Brazil’s economy and financial markets. While the order includes some exemptions — such as for orange juice, civilian aircraft, and aircraft parts — many of Brazil’s key exports were left unprotected. One notable beneficiary is aerospace company Embraer, which employs over 2,000 people in the U.S. and successfully lobbied to shield its operations.

The Trump administration claims that Brazil represents a “national security threat” to the United States. The order also includes harsh criticism of the ongoing trial of former Brazilian President Jair Bolsonaro, who faces charges of attempting a coup. The document refers to the proceedings as “politically motivated persecution.”

Markets React Swiftly

Following the announcement, the Brazilian real initially plummeted, but rebounded after the exemptions were published. The real strengthened by 0.6% against the dollar, becoming one of the few emerging market currencies to post gains that day. Shares of Embraer surged by 11.5% in São Paulo, while other exporters like Weg SA and Suzano SA recovered and rose by over 1.7%.

Blanket Tariff on Copper: Immediate and Harsh Impact

While Brazil faces a targeted strike, the 50% tariff on copper applies globally, without singling out any particular country. The measure will go into effect in just two days, hitting not only exporters but also American manufacturers who rely on copper for electronics, construction materials, and industrial equipment.

The market reaction was swift — U.S. copper prices plunged 18%, marking the largest one-day drop since 1989. Shares of mining giants Freeport-McMoRan and Southern Copper took a hit — the former dropped 10%, while the latter lost more than 6%.

The White House defends the move as a way to support domestic industry and fix a “trade imbalance,” but analysts warn it could backfire by raising costs for U.S. businesses and slowing economic growth. The Tax Foundation noted that the growing list of industry-specific tariffs — already affecting steel, aluminum, autos, lumber, and pharmaceuticals — could significantly strain the U.S. economy.

End of the $800 Duty-Free Rule: No More Exemptions

Trump also signed an order abolishing the de minimis exemption, which previously allowed goods worth up to $800 to enter the U.S. duty-free. Starting August 29, all low-value shipments will be subject to tariffs based on their price and origin — with no exceptions, even for U.S. allies.

This builds on Trump’s earlier decision in May to close the loophole for China and Hong Kong, citing abusive trade practices. Though some companies tried to block the new rule in court — including an auto parts seller who argued the change was illegal and harmful — a federal trade judge on Monday ruled in Trump’s favor.

The impact will be felt most by e-commerce platforms and small businesses that relied on cheap international imports. From now on, every international parcel will be taxed — and no country, no merchant, no shipment will be spared.


#TRUMP , #Tariffs , #TradeWars , #USPolitics , #Geopolitics

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