In a bold move to reshape America’s trade landscape, President Donald Trump announced a sweeping set of tariffs on dozens of trade partners, signaling a tough stance on international commerce. Signed on Thursday, these new policies aim to protect U.S. interests but are already sending ripples through global markets, impacting everything from copper to gold prices.
A Wave of New Tariffs
The centerpiece of Trump’s plan is a significant 35% tariff on Canada, effective immediately on Friday, August 1, 2025. Most other trade partners face a baseline 10% tariff, with some “reciprocal” rates kicking in within a week. This follows a flurry of trade moves in recent days, as Trump races to meet his self-imposed deadlines. For instance, Mexico, the U.S.’s largest trading partner, received a 90-day reprieve to negotiate better terms, while South Korea secured a deal with a 15% tariff on its imports but no tariffs on U.S. exports.
Other notable actions include a 50% tariff on semi-finished copper products, sparing copper scrap, which caused copper futures to drop sharply. Brazil faces 50% tariffs on many goods, though key U.S. imports like orange juice and aircraft parts for Embraer are exempt. The European Union struck a deal with 15% tariffs on its goods, though some details remain unresolved. India, however, faces a steeper 25% tariff, plus a “penalty” for its ties with Russia, after trade talks stalled.
Ongoing Negotiations and Market Reactions
Not all deals are finalized. The U.S. and China are in their third round of trade talks, with Treasury Secretary Scott Bessent hinting at a potential agreement before an August 12 deadline. These negotiations aim to pause the threat of sky-high tariffs, which could further disrupt global trade.
Markets are already feeling the heat. Gold, a safe-haven asset, held steady at $3,288.30 an ounce but is down 1.4% this week, reflecting investor caution. Despite a 25% surge this year, driven by trade uncertainties and geopolitical tensions, gold’s price has stabilized as investors grow accustomed to Trump’s trade policies. The Bloomberg Dollar Spot Index, which tracks the U.S. dollar, remained flat, while other metals like silver, platinum, and palladium saw weekly losses.
What’s Next?
The new tariffs will raise the average U.S. tariff rate to 15.2%, up from 13.3% and a stark contrast to the 2.3% rate in 2024 before Trump’s presidency, according to Bloomberg Economics. This shift could increase costs for consumers and businesses, potentially fueling inflation. Investors are also eyeing upcoming U.S. employment data for July, which may show slower job growth and rising unemployment, adding another layer of uncertainty.
Trump’s tariff strategy is a high-stakes gamble to boost American industries while pressuring trade partners. However, it risks straining diplomatic ties and disrupting global supply chains. As negotiations continue and markets adjust, the world watches closely to see how this bold trade agenda will unfold.f
