Trump says he'll impose a 50% tariff on copper and hints at supersized pharma rate

Trump signaled tariffs would be imposed on semiconductors as well, while not providing a specific date or rate. The 50% tariff on imported copper matches with 50% tariffs on steel and aluminum.

For pharmaceutical products, the president suggested that pharmaceutical manufacturers will have up to 18 months to build new U.S. supply chains and avert a tariff that might total 200%.

"We’re going to give people about a year, a year and a half, to come in," Trump said during a White House cabinet meeting. "We'll give them a certain period of time to get their act together."

The remarks come after the Trump administration sent 14 letters on Tuesday to trade partners that threatened to reimpose tariffs on South Korea, Japan, Thailand, Malaysia, and others on August 1, unless those foreign governments strike trade deals deemed favorable to the U.S.

Commerce Secretary Howard Lutnick said in a CNBC interview later Tuesday that between 15 and 20 letters will be sent to foreign governments in the next two days. He added that the copper levy will kick in either late July or August 1.

"The idea is to bring copper home," Lutnick said. "We need that kind of production in America."

Copper prices jumped about 10% following Trump's announcement. It was trading around $5.50 per pound on Tuesday afternoon, a record-high.

The Commerce Department has initiated national security investigations into copper, pharmaceuticals, and lumber, among other goods. That sets in motion another barrage of tariffs under a fortified legal basis if the probe finds an "unjustifiable" act threatening the U.S. economy. Lutnick said on CNBC the investigations into pharmaceuticals and semiconductors will conclude at the end of the month.

The so-called sectoral tariffs are separate from the levies that Trump plans to impose on trading partners on August 1 if efforts at broader trade deals falter.

If Trump moves ahead with steep tariffs on pharmaceutical products, much of the sector could be swept up in import taxes.

Research from the Kenan-Flagler Business School at the University of North Carolina shows that the U.S. imported $212 billion in pharmaceutical goods in 2024, rendering it the fifth-most imported product. Most generic medications in the U.S. originate from India and China. Beijing is still ironing out a broader trade deal with the Trump administration, though tensions between the U.S and China cooled in recent weeks.

Over the past day, Trump has waffled between sticking to his August 1 deadline and saying it's "not 100% firm." Other administration officials are projecting confidence in their ability to clinch trade agreements with dozens of trading partners in three weeks.

"Again, it’s 100% up to the president," Treasury Secretary Scott Bessent said in a Spectrum News interview. "As I said, he’s given us maximum leverage.”