Global Trade Tensions Rise: Trump Announces 50% Tariffs on Copper, Brazil Imports

Stock futures dipped on Thursday, July 10, 2025, as investors reacted to President Donald Trump’s late-Wednesday announcement of significant new tariffs. Trump declared a 50% U.S. tariff on imported copper, set to take effect on August 1.

The President also imposed a 50% tariff on imports from Brazil, citing an “unfair trade relationship” and partly as retaliation for the ongoing trial against former Brazilian President Jair Bolsonaro. In response, Brazilian President Luiz Inacio Lula da Silva stated that Brazil would react in accordance with its economic reciprocity law, causing the iShares MSCI Brazil ETF (EWZ) to shed 1.8% in premarket trading.

The new tariff announcements immediately impacted market sentiment, with S&P 500 futures trading 0.2% lower, Nasdaq-100 futures also down, and Dow Jones Industrial Average futures slipping by 100 points.

This shift comes after Wall Street concluded Wednesday’s session with gains, driven by optimism in the artificial intelligence sector. The S&P 500 and Dow both rose by 0.6% and 0.5% respectively, while the Nasdaq Composite hit a record high with a 0.9% jump, fueled by Nvidia’s near 2% surge. Despite the bullish AI sentiment, which some experts believe could counteract tariff-induced price increases, concerns over the broader economic impact of these duties, particularly on inflation and the labor market, were also highlighted in the Federal Reserve’s June meeting minutes released Wednesday. The minutes revealed a split among policymakers regarding future interest rate cuts.

Trump had previously sent letters this week to leaders of at least 21 other countries, including Japan and South Korea, outlining new U.S. rates on imports, all also scheduled to begin August 1.

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