Group 1 - The U.S. government will impose a 50% tariff on imported copper semi-finished products and high-copper-content derivatives starting August 1 [1][3] - The tariff will apply to products such as copper pipes, wires, rods, and sheets, but not to copper ore, concentrates, or cathodes [3][5] - Following the announcement, copper futures prices on the New York Commodity Exchange fell by 20% in one day [5][9] Group 2 - The high tariff is expected to significantly impact U.S. manufacturing, as nearly half of the copper used by American factories is sourced from overseas suppliers [9][11] - Major suppliers of refined copper and copper products to the U.S. include Chile, Canada, and Mexico [9] - The tariff is likely to lead to increased costs for consumer goods such as refrigerators, cars, and air conditioners, creating a ripple effect on prices [9][11] Group 3 - Analysts suggest that the tariff is a direct attempt by the government to shift costs from consumers and manufacturers to producers, aiming to rebuild the U.S. supply chain [7][11] - The copper tariff is being implemented in addition to existing tariffs on steel and aluminum, which are also used in similar products [11]

Core Viewpoint - The trade war initiated by the Trump administration against China, aimed at reducing the trade deficit and revitalizing the U.S. economy, is causing significant economic strain and may backfire, as highlighted by former Treasury Secretary Janet Yellen's warnings about the U.S. economy's vulnerabilities [1][3][5]. Economic Impact - The U.S. trade deficit with China reached $400 billion in 2024, prompting the Trump administration to impose high tariffs on Chinese goods to protect domestic industries and increase government revenue [3][5]. - The U.S. GDP contracted by 0.3% in the first quarter of 2025, marking the worst performance since the pandemic recovery began, contradicting the administration's optimistic outlook [5][14]. Supply Chain Vulnerabilities - The U.S. heavily relies on China for critical materials, particularly rare earth elements, which account for over 70% of global supply, essential for high-tech manufacturing [5][9]. - Efforts to reduce dependence on Chinese rare earths have been largely unsuccessful, leading to increased production costs and factory shutdowns in the U.S. [7][9]. Inflation and Production Costs - Tariffs have led to rising costs for American manufacturers, as many imported goods are essential raw materials and components, resulting in higher prices for consumers and reduced production capacity [11][12]. - The increase in import costs is expected to lead to higher consumer prices across various sectors, including groceries, fuel, and electronics, putting additional financial pressure on households [16]. Long-term Economic Concerns - Yellen emphasized that the ongoing trade war could severely hinder the U.S. green energy sector, which relies on affordable imports of lithium, nickel, and cobalt from China [11][12]. - The potential for a long-term decline in U.S. competitiveness in global markets is a significant concern, as companies may struggle to compete with foreign rivals if supply chains are disrupted [16].