- Ever since the maverick and extremely unpredictable Donald Trump has assumed the most powerful office in the world, viz. the president of the United States of India, the global community must be wondering from where the next jolt will befall them. The volatility, unpredictability, and penchant for throwing surprises have been the hallmark of Donald Trump’s second tenure. His single-minded obsession with the tariffs, especially imported products coming into the USA, has left every country trading with America on tenterhooks. None of the countries is spared from the tariff war unleashed by Trump, whose flip-flops, too, have become quite impulsive. His numerous deadlines have been exhausted, and the tariff will take effect soon.
PC : India Today
- How does the Indian leadership intend to proceed with the issue of reciprocal tariffs without harming local markets and sentiments? Let’s to comprehend the situation. Mind you, PM Modi was one of the first to visit the USA when Trump took over the reins. The trade talks are underway, and an outcome is expected soon. Meanwhile, how India will protect its turf with a trade deal, even as Trump looks set to tariff pharma after copper, is keenly watched. As announced, copper entering America will be taxed at 50%. Will the tariff apply to all exporting nations, will it apply from August 1, or immediately? Details are fuzzy in standard Trump fashion, but the rate is fixed, and jitters have spread, even though the tariff wasn’t entirely unexpected.
PC: The Indian Express
- Trump showed intent when he ordered an investigation in February to find out whether unfair trade practices or dumping were stunting the growth of America’s copper industry. He also set a precedent by imposing a 50% tariff on steel and aluminium imports. If copper producers and exporters still feel blindsided, it’s because of all the noise the Trump administration generates day after day. That said, a 50% tariff on copper is no small matter. Every electrical appliance needs tonnes, sometimes literally, of the first metal known to humans. Gasoline cars use about 20kg each, some EVs more than 80kg. And if China continues stalling the supply of rare earth magnets, the demand for copper to make powerful induction motors will only rise.
PC: Journal of Commerce
- Further, US customers may therefore foot higher prices for all things copper. It’s a hefty tax premised on the need to increase US production of copper, which has reduced by a fifth in just a decade. America imports roughly half of the copper it uses every year, worth a modest $8bn, but the fear, confirmed by the rare earths squeeze, is that this might be a vulnerability. India is a minor player in America’s copper market, with exports worth only $311mn, but most of these are in the form of value-added goods like pipes and wires, and may hurt producers, unless India swings an exemption under its gestating trade deal. The greater concern is Trump’s warning about 200% pharma tariffs with India exporting worth $8bn. Alternative markets should be explored.
