Donald Trump vowed to further escalate his trade wars on Tuesday, threatening US tariffs of up to 200% on foreign drugs and 50% on copper, amid widespread confusion around his shifting plans.
Hours after saying his latest deadline for a new wave of steep duties was “not 100% firm”, the US president declared that “no extensions will be granted” beyond 1 August.
“There has been no change to this date, and there will be no change,” Trump wrote on social media, a day after signing an executive order that changed the date from 9 July.
On Monday, he announced plans to impose US tariffs of up to 40% on goods imported from 14 countries, including Bangladesh, Japan and South Korea. But he extended a pause on the duties’ introduction, allowing three more weeks for negotiations.
More letters will be sent to countries, informing them of new tariff rates “today, tomorrow, and for the next short period of time”, according to Trump.
Global stock markets have largely shrugged off the latest threats. On Wall Street, the benchmark S&P 500 was up just 0.03% and the Dow Jones industrial average was down 0.3%. In recent weeks, some investors appear to have embraced the Taco – or Trump Always Chickens Out – trade.
Speaking on Tuesday at the White House, Trump laid out plans to step up his controversial trade strategy, which economists have warned risks exacerbating inflation.
Imported copper will face a US tariff of 50% in a bid to bolster US production of the metal, the administration announced. US copper prices rose 12% to hit record levels.
After providing manufacturers with around a year or a year and a half’s notice, pharmaceutical imports are also “going to be tariffed at a very, very high rate”, the president said. “Like 200%.”
“We’re going to be announcing pharmaceuticals, chips and various couple of other things – you know, big ones,” he added, of the administration’s tariff plans.