Trump slaps 50% tariff on all copper and Brazilian imports

Donald Trump has ordered a sweeping 50% tariff on all copper and Brazilian imports, igniting one of his most aggressive trade moves since returning to the White House.

The decision, signed on Wednesday, is already rattling financial markets and foreign trade partners. The tariff on Brazil will take effect in seven days, but it’s already shaking the country’s economy, despite a list of exemptions meant to cushion the blow.

The official executive order claims that Brazil’s policies pose a national security risk to the United States. It also takes aim at Brazil’s former president, Jair Bolsonaro, who is currently on trial for allegedly attempting a coup against sitting President Luiz Inácio Lula da Silva.

The order calls the legal process against Bolsonaro “politically motivated persecution.” The exemption list, however, left out some of Brazil’s biggest exports, but it spared orange juice, civil aircraft, and airplane parts. That was a clear nod to Embraer, the Brazilian aerospace firm, which has over 2,000 employees working in the U.S. and has been lobbying hard to shield its operations.

Brazil’s market responds as exemptions soften the blow

Brazil’s currency took an immediate hit but bounced back once the exemptions were made public. The real, which had been down nearly 1%, rebounded and rose 0.6% against the dollar, making it one of the few emerging-market currencies to post gains after the news.

Stocks in major Brazilian exporters followed the same path. Embraer surged 11.5% in São Paulo after escaping the full impact of the tariffs. Weg SA and Suzano SA, which had dropped earlier in the day, both recovered and rose more than 1.7%.

At the same time, Trump announced a separate 50% tariff on all copper imports, without limiting it to any specific country. That blanket policy will go into effect on Friday, just two days after the announcement. The impact was immediate.

U.S. copper prices collapsed, dropping as much as 18% in after-hours trading. That’s the biggest one-day price fall since 1989. Two of the largest copper producers, Freeport-McMoRan and Southern Copper, were hit hard. Freeport stock plunged about 10%, while Southern Copper was down more than 6%.

The White House justified the copper tariffs by saying they would “boost domestic industries” and help correct trade “imbalances.” But economic analysts and trade watchers warned that these tariffs will push up costs for U.S. companies that rely on copper to manufacture electronics, construction materials, and industrial equipment.

The Tax Foundation said the rising number of sector-specific tariffs (which already include steel, aluminum, cars, lumber, and pharmaceuticals) could hold back overall economic growth in the U.S.

Trump shuts down $800 loophole on all small imports

Trump also signed an order ending the de minimis trade loophole, which had allowed goods worth $800 or less to enter the U.S. duty-free. That change, which takes effect on August 29, applies to all countries, including U.S. allies. Every low-value item shipped into the country will now be subject to tariffs, based on how much it costs and where it came from.

This move builds on Trump’s earlier decision in May to shut the loophole for China and Hong Kong, citing trade abuse. A few companies tried to stop the new policy. One auto parts retailer even went to federal court, arguing that the ban was unlawful and would hurt its business. But on Monday, a federal trade judge refused to block the action, giving Trump the green light to expand the tariff wall around the entire import system.

All packages shipped through the international postal network will now be taxed. This is expected to affect e-commerce firms and small businesses that rely on low-cost imports. The White House made it clear that there would be no exceptions, no delays, and no special treatment. Every country gets the same rule — $800 or less no longer means tax-free.

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