Trump plans 50pc copper tariff, pharma levy may hit 200pc

WASHINGTON: US President Donald Trump said Tuesday that he plans to set a 50 per cent tariff on copper imports, while threatening a much higher rate on pharmaceuticals that would kick in after at least a year.

“Today we’re doing copper,” he told a cabinet meeting, indicating progress in an ongoing probe into imports of the metal.

Meanwhile, Trump made the announcement soon after French President Emmanuel Macron stressed the need for reducing trade dependence on the US and China, as he also called for joint UK-France efforts to defend the post-WWII order.

The US president also said that Washington would soon make an announcement on pharmaceuticals, broadening the slate of sector-specific levies his administration has imposed since January.

But he said he would allow pharmaceutical manufacturers time to relocate their operations into the United States before rolling out fresh duties.

“We’re going to give people about a year, a year and a half to come in, and after that, they’re going to be tariffed,” Trump said.

“They’re going to be tariffed at a very, very high rate, like 200 percent,” he added. “We’ll give them a certain period of time to get their act together.”

Apart from imposing a blanket 10 per cent tariff on almost all US trading partners and threatening higher rates customized to dozens of economies, Trump has also imposed duties on steel, aluminium and autos this year.

Besides copper and pharmaceuticals, he has ordered probes into imports of lumber, semiconductors and critical minerals too that could eventually bring about further levies.

US-CHINA TRADE WAR MADE GLOBAL

The latest announcement came as the ongoing US-China trade war engulfed the entire world after Trump decided to impose tariffs on friends and foes alike soon after entering the White House for second term.

As far as the copper tariffs are concerned, Chile would be worst affected, being the largest source of this commodity imports. It is followed by Canada, Peru, Democratic Republic of Congo and Mexico.

When it comes to the pharmaceuticals, the European giants are the main target, especially amid the ongoing trade talks between the US and the EU.

Meanwhile, the US a massive amount of drugs from Singapore and India.

Trump wants to the EU to open the market for the US pharma companies which produce very expensive medicines. It is the reason why the bloc cannot afford accepting the demand because it will prove a huge burden for the universal healthcare system.

Unlike the US, the only developed country without a universal healthcare service, Europe prides itself for the system developed after the WWII.

The current cost of living crisis has already rattled the liberal democracies in Europe, which are witnessing an alarming rise of far right.