Trump Slaps 50% Tariff on Copper, Targets Brazil

QUICK SNAPSHOT
Global Sentiment: Risk-on
Factors: IT Stocks Rally, Trump Tariff

TODAY’S WATCHLIST
- Tata Consultancy Services Earnings
- US Weekly Initial Jobless Claims Data

THE BIG STORY
President Donald Trump on Wednesday announced a 50% tariff on copper imports, effective August 1, citing national security concerns. In a post on Truth Social, he stressed copper's strategic importance to US defence and technology sectors from hypersonic weapons to semiconductors and radar systems. Simultaneously, Trump turned up the pressure on Brazil, threatening Latin America's largest economy with a matching 50% tariff and launching an investigation into its trade practices. His tariff letter to President Luiz Inácio Lula da Silva vented frustration over Bolsonaro-related political tensions, warning that even steeper duties could follow.

Meanwhile, minutes from the Federal Reserve’s June meeting revealed only limited support among policymakers for cutting interest rates in the near term, despite Trump's increasingly vocal demands for immediate and substantial rate reductions. Most Fed officials flagged tariff-driven inflation risks as “temporary or modest” and expressed caution amid uncertainty around Trump’s evolving trade agenda. While a majority still expect rate cuts later this year, there was no appetite for the aggressive action Trump is pushing. Fed Chair Jerome Powell faces continued pressure as officials weigh how deeply tariffs could hit lower-income households already showing signs of strain. 

DATA
US apparel imports from China dropped to their lowest monthly level in 22 years in May, reflecting the growing impact of steep tariffs and strained trade relations between the two largest economies. According to US International Trade Commission data, clothing imports from China fell to $556 million in May, down sharply from $796 million in April. This marks the fourth consecutive monthly decline and the weakest monthly figure since May 2003. China has long been the dominant supplier of garments to the US, but its share of the market has steadily eroded as tariffs and geopolitical tensions have reshaped global supply chains.
What happened overnight

US stocks indices closed higher on Wednesday, buoyed by gains in technology shares, with the Nasdaq leading the advance. Nvidia briefly became the world’s first company to hit a $4 trillion market valuation, reflecting its dominant role in the ongoing artificial intelligence boom. Although the chipmaker’s shares eased slightly by the close, they still ended the day up 1.8%, with a market capitalisation of approximately $3.97 trillion. Other major tech stocks also contributed to the rally. Microsoft shares rose 1.4%, while Amazon.com added 1.5%, helping lift broader indices and reaffirming the market’s confidence in mega-cap technology firms as drivers of growth amid AI-related momentum.

US Treasury yields declined on Wednesday, with the 10-year note slipping to 4.34%, after a well-received $39 billion auction eased fears of waning demand. The strong take-up suggested investors remain confident in the bond market’s resilience, even as trade policy uncertainty and rate cut speculation swirl. Minutes from the Fed’s latest meeting reinforced expectations for multiple cuts later this year, helping anchor yields lower as markets reassess both inflation risks and the shifting global growth outlook.

The US dollar index held firm around 97.5 on Wednesday, as markets digested mixed signals from the Federal Reserve’s June meeting and monitored developments on the US-EU trade front. While most Fed officials still anticipate cutting rates this year, opinions remain split some backing a move as early as July, others urging caution. The euro dipped 0.09% to $1.171, despite hovering near its strongest level since August 2021, as hopes rose that the EU might avoid the full brunt of upcoming US tariffs. 

Brent crude oil prices held steady on Wednesday as the market balanced encouraging signs of strong US gasoline demand against rising geopolitical tensions in the Red Sea and the potential economic fallout from looming US copper tariffs. Brent crude edged up just 4 cents to settle at $70.19 a barrel, while West Texas Intermediate gained 5 cents to close at $68.38. 

Day’s Ledger

Economic Data

• Germany June CPI Data
• India M3 Money Supply
• Japan June PPI
• US Initial Jobless Claims

Corporate Action

• Apr-Jun earnings: ACE Edutrend, Anand Rathi, Atharv Enterprises, Eimco Elecon, Groarc Industries, GTPL Hathway, IREDA, International Travel, Netlink Solutions, Stellant Securities, Tata Consultancy Services, Tata Elxsi 
• Julien Agro to consider fund raising 
• PC Jeweller to consider fund raising 
• Tourism Finance to consider stock split

Policy Events

• US Fed Musalem Speech
• US Fed Waller Speech
• BOE Breeden Speech

TICKERS

• AMBER ENTERPRISES board will meet Saturday to consider raising up to ₹25 billion via securities; details on instruments, use of funds not disclosed yet.
• Andhra Pradesh Cabinet approved ₹10 billion HUDCO loan for airport development at Kuppam, Shrikakulam, Amaravati; also to clear pending infra bills, fund viability gap.
  
• BRIGADE ENTERPRISES to consider raising funds via non-convertible debentures on Jul. 15; the issuance would be through private placement, subject to board approval.
  
• EMCURE PHARMACEUTICALS’ Sanand facility cleared USFDA pre-approval inspection with zero observations, inspection conducted from Jun. 30 to Jul. 8, the company said Wednesday.
• GRANULES INDIA gave ₹2.74 billion guarantee to secure loan for Swiss subsidiary Senn Chemicals from MUFG Bank Singapore; to be treated as contingent liability.
• HCL TECH tied up with Japan’s Astemo Cypremos to support smart mobility shift using its TestSphere platform and data solutions; partnership spans 150 countries.
• OIL INDIA extended gas supply deal with GAIL by 15 years; to supply 900,000 standard cubic metres/day from Rajasthan for power generation in Rajasthan.
• PB FINTECH set up Paisabazaar Middle East in Dubai with ₹24 mln capital; new entity to focus on fintech and marketing services in region.
• PHOENIX MILLS’ unit Pallazzio to invest ₹47.3 million in JSW-backed O2 Renewable’s solar project, gaining 40–45% stake via equity and convertible debentures.
• RAILTEL won ₹174.8 million contract from Chhattisgarh govt for network infra upgrade; project includes hardware, operations, connectivity, and runs through Jan. 2031.
• SAMMAAN CAPITAL to raise up to ₹2 billion in fourth NCD tranche under ₹20 billion shelf; Crisil-rated ‘AA’, listing on BSE and NSE.
• VEDANTA slammed Viceroy’s fraud report as baseless propaganda; shares fell 3.4%. Viceroy alleged Ponzi-like structure, inflated assets. Vedanta said claims lack credibility, urged calm.

MUST READ

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• ECB doesn’t need to cut rates any further, Holzmann tells MNI
• ECB shouldn’t commit to nor rule out more cuts, Nagel says
• Powell’s successor may struggle to deliver the rate cuts Trump wants
• Trump unveils latest tariff rates with the Philippines at 20%