On Tuesday, President Trump announced plans to impose tariffs of up to 50% on imported copper and could potentially levy taxes as high as 200% on imported pharmaceuticals, providing drug companies approximately one to one and a half years to relocate their supply chains back to the United States before implementation. During a cabinet meeting, Trump emphasized his intention to target specific industries for tariffs, including pharmaceuticals, semiconductors, and metals.

The proposed tariff on copper is set at 50%, which caused New York copper futures to surge by as much as 17% at one point during the day, marking the largest single-day increase since records began in 1988, thereby hitting a historical high. By the time of this report, the rise had narrowed to 9.67%, with prices at $5.512 per pound.

Trump stated, "We're giving companies about a year to a year and a half to come back to America for production. If, at that time, we are still importing pharmaceuticals, there will be very high tariffs, possibly up to 200%. We're giving them some time to sort things out." This industrially focused tariff action differs from Trump's “reciprocal tariff” policy, which is set to officially take effect on August 1.

Market analysts pointed out that Trump's timing on copper tariffs is very strategic. Copper inventories in China have been rapidly declining over recent months, while inventories of U.S. copper futures (COMEX) have risen to a seven-year high, indicating a clear decoupling between the two markets. Although the U.S. has rich copper reserves underground, extraction and factory construction take years, and domestic smelters cannot compete with low-cost Chinese counterparts, making it difficult for U.S. supply to fill the gap immediately.

Copper is widely used in residential construction, electronic products, and automotive manufacturing (both gasoline and electric vehicles), possessing high economic and strategic value. Analysts highlight that Trump’s emphasis on copper tariffs will increase market focus on their profound impact on global supply chains and U.S. manufacturing policy. Trump's comments also impacted the pharmaceutical industry. The pharmaceutical index within the S&P 500 index turned downward following the announcement, with major companies like Eli Lilly (LLY-US), Merck (MRK-US), and Pfizer (PFE-US) seeing stock price increases subside during trading.

Furthermore, market participants noted that if pharmaceutical tariffs are eventually implemented, the impact on Ireland could be particularly significant. According to analysis by TD Cowen, several large U.S. pharmaceutical companies have nearly 20 factories in Ireland and export to the U.S. Last year, Ireland had a $54 billion trade surplus with the U.S., much of it derived from pharmaceuticals, which is one of the main targets of Trump’s policies. Despite Trump's claims that the tariff measures are intended to protect national security, some market participants question whether this move could lead to sustained high commodity prices, compress corporate profit margins, and potentially counteract inflation-fighting efforts.