President Trump imposes new tariffs on trading partners

Summary

Marketplace Morning Report: President Trump Imposes New Tariffs on Trading Partners
Release Date: July 31, 2025

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Introduction

In this episode of the Marketplace Morning Report, host Liana Byrne delves into President Donald Trump's latest trade policies, focusing on new tariffs imposed on key international partners. The discussion highlights the immediate market reactions, the broader economic implications, and the geopolitical tensions arising from these decisions.

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US-South Korea Tariffs

Liana Byrne opens the report by addressing the impending tariff deadline:

"[00:59] Liana Byrne: Tariff deadline day tomorrow. So who's doing deals and who isn't?"

President Trump has announced a 15% tariff on goods imported from South Korea as part of a new trade agreement. This move significantly impacts South Korea's prominent automotive and semiconductor sectors.

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Impact on South Korean Automakers and Chip Industry

Katie Silver from the BBC provides an in-depth analysis of the repercussions:

"[01:21] Katie Silver: ...shares in the likes of Hyundai and Kia dropping on the news. That might surprise some because...15% tariff level is better than the 25% across the board car tariffs."

While the 15% tariff is a reduction from the previously proposed 25%, it still places South Korean automakers at a disadvantage comparable to Japanese counterparts, who faced a much lower 2.5% tariff. This adjustment has led to a noticeable decline in the stock prices of major South Korean car manufacturers.

However, there's a silver lining for the chip industry:

"[01:21] Katie Silver: ...good news for the chip industry."

South Korea has pledged to invest approximately $350 billion in the U.S. and commit to purchasing $100 billion worth of U.S. energy, a move hailed by President Trump as beneficial for American industries.

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Copper Tariffs and Market Impact

President Trump's administration has also introduced a 50% worldwide levy on copper pipes and wiring, excluding input materials like copper ores and concentrates. Katie Silver explains the market's reaction:

"[02:17] Katie Silver: ...the price of copper into an absolute tailspin. The price, for example, plunged about 18%."

The sharp decline in copper prices is expected to have a cascading effect on various industries, including infrastructure and household goods. While the White House argues that the tariff aims to boost domestic production, analysts caution that expanding infrastructure domestically could take years and require substantial investment.

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US-Brazil Tariffs and Political Tensions

In a move parallel to South Korea, President Trump has signed an executive order imposing 50% tariffs on Brazilian goods. This decision is rooted in Trump's criticism of Brazil's handling of former President Jair Bolsonaro, who faces accusations of orchestrating a coup.

Ione Wells in Sao Paulo adds context to the ramifications:

"[03:14] Ione Wells: ...Brazil is the biggest producer of coffee, of orange juice... Some Bolsonaro supporters... but some analysts think this could backfire..."

While Bolsonaro's staunch supporters view the tariffs as unjust persecution, there's growing concern that key agricultural producers may withdraw their support if they suffer economically due to these new trade barriers.

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US Treasury Sanctions on Brazilian Judge

Further escalating tensions, the U.S. Treasury has imposed financial sanctions on a senior Brazilian judge overseeing the criminal case against Bolsonaro. This action not only heightens political strain between the two nations but also raises questions about the intertwining of trade policy and judicial processes.

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Additional Economic Highlights

• Indian Rupee: The Indian currency slipped to a five-month low amid concerns over impending U.S. tariffs on Indian exports, initially threatened at 25% starting Friday.

• Shell's Earnings: Despite a third-quarter profit decline caused by weaker oil prices and operational outages, Shell exceeded market expectations. The company's shares rose nearly 2% following a commitment to $3.5 billion in stock buybacks.

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China's Dominance in the Electric Vehicle (EV) Market

Shifting focus to the global EV landscape, Nick Marsh from the BBC reports on China's strategic advancements:

"[04:48] Nick Marsh: ...China has been on a mission to dominate the technologies of tomorrow."

China's aggressive investment and state-supported initiatives have positioned it as a leader in the EV sector. With seven of the world's top ten EV producers being Chinese, the country is expanding its market presence despite facing tariffs from the U.S. and the EU.

Michael Dunn, an auto industry analyst, elaborates on China's approach:

"[05:49] Michael Dunn: There's subsidies in every possible form."

China's state capitalism model, characterized by extensive government collaboration with automotive companies, has facilitated rapid advancements and cost reductions in EV technology. This strategy has not only made electric vehicles more affordable but has also propelled numerous Chinese startups, such as Xpeng, to the forefront of the industry.

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Conclusion

President Trump's imposition of new tariffs on South Korea and Brazil has reverberated across global markets, impacting major industries from automotive to agriculture. While these measures aim to bolster domestic production and correct trade imbalances, they also introduce significant economic uncertainties and geopolitical tensions. Concurrently, China's unwavering push into the electric vehicle market underscores the shifting dynamics of global trade and technological leadership.

Stay informed with Marketplace's David Brancaccio as he continues to bring you the latest in business and economic news to kickstart your day.

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This summary omits advertisements, intros, outros, and non-content sections to focus solely on the episode's core discussions.

Transcript

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[Liana Byrne]

Tariff deadline day tomorrow. So who's doing deals and who isn't? Good morning. This is the Marketplace Morning Report from the BBC World Service. I'm Liana Byrne. So we'll start in South Korea, a major player in cars and computer chips. President Donald Trump says goods from there will face a 15% tariff under a new trade deal. The BBC's Katie Silver has more.

[Katie Silver]

You mentioned those automakers. We have actually seen shares in the likes of Hyundai and Kia dropping on the news. That might surprise some because of course that 15% tariff level is better than the 25% across the board car tar tariffs. But they are now at a disadvantage really when it comes to what was previously the case, particularly when it came to Japan. Japan was taxed about two and a half percent. When it came to the carmakers, Korea didn't face that. Now they're on that same level of 15%. So there has been some downward movement in the South Korean carmakers. But without a doubt it does seem to be like it's going to be good news for the chip industry. And it has been certainly hailed from President Trump's side because of course, South Korea has pledged as part of this to spend about $350 billion investing in the U.S. and buy up about $100 billion worth of U.S. energy.

[Liana Byrne]

The president also confirmed a worldwide levy on copper pipes and wiring. What impact is that likely to have?

[Katie Silver]

They say that they're going to be putting a 50% worldwide levy on copper pipes and wiring, excluding what they called input materials. So that's copper ores and concentrates. But it has sent the price of copper into an absolute tailspin. The price, for example, plunged about 18%. And it could really see the prices for lots of different goods Skyrocket because copper is hugely important when it comes to everything from infrastructure to household goods. And the White House says this is all about trying to increase domestic production. But many analysts say this would take years and cost millions upon millions when it comes to infrastructure development.

[Liana Byrne]

Okay, the BBC's Katie Silver, thank you so much for joining us in Marketplace.

[Katie Silver]

Thanks for having me.

[Liana Byrne]

Next to Brazil, President Trump has signed an executive order which brings total tariffs on Brazilian goods to 50%. It comes after Trump's criticism of Brazil's treatment of former Brazilian President Jair Bolsonaro, who is accused of plotting a coup. The BBC's Ione Wells is in Sao Paulo.

[Ione Wells]

There is a lot of concern among producers. Brazil is the biggest producer of coffee, of orange juice, two things that the US Buys a lot of. It also sells a lot of steel, products of oil. Some Bolsonaro supporters support this move. They think that he's the victim of a witch hunt as well. But there are some analysts who think this could actually backfire to Bolsonaro, particularly because, for example, some agriculture producers who may have previously supported Bolsonaro could well turn against him if they start to get hit economically by the tariffs that this feud has introduced.

[Liana Byrne]

Ione Wells reporting. And it doesn't stop there. The US treasury also announced it's imposing financial sanctions on the senior Brazilian judge who's overseeing the criminal case against Bolsonaro. Okay, let's do the numbers. Rupee slipped to a five month low on worries over US tariffs. President Trump had threatened a 25% levy on Indian exports starting Friday. Meanwhile, Shell's quarterly profit fell by a third as weaker oil prices and outages hit earnings. But it still beat forecasts. Shares were up nearly 2% after the oil major pledged $3.5 billion in buybacks. In many parts of the world, electric cars still cost more than your average gas or diesel wheels. But not in China. With its Hu manufacturing base and of course, a massive population, China has been able to make big EV inroads. Now, despite tariffs from the US and the eu, Chinese carmakers have their eyes set on western roads. The BBC's Nick Marsh has this report from China.

[Nick Marsh]

This is a battery swapping station in Shanghai. There are thousands of them. For the city's legions of electric vehicles, you simply drive in and the machines do the rest. In a matter of minutes, your flat battery is taken out and replaced with a fully charged new one. It's state of the art technology for less than the price of a full tank. Even the southern city of Guangzhou, known for its polluting factories is today a sea of green number plates. So green means it's an evil and blue means that it's not an ev. Now we have green here, another green behind. For most countries, EV is seen as the future of driving. But for China, the future has arrived. None of this is an accident. For the past two decades, China's been on a mission to dominate the technologies of tomorrow. And it's thrown the full weight of its economy into it.

[Michael Dunn]

There's subsidies in every possible form.

[Nick Marsh]

Michael Dunn is an auto industry analyst who spent two decades in Asia.

[Michael Dunn]

The government is actively working hand in hand with companies to say auto industry electrics goal is to dominate it. Here's how we're going to get it done.

[Nick Marsh]

He calls it state capitalism. Western countries call it unfair. The truth is that they're worried. Today, seven of the world's top 10 EV producers are Chinese and many of them are recent startups like xpeng. I met with their president Brian Gu in Guangzhou.

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[Nick Marsh]

Their newest car has voice activation, an inbuilt entertainment system. It's also got genuinely impressive self driving capability. The car's just slowed down by itself. The total price for this car, $20,000. It seems that China has made luxury mainstream. I'm the BBC Nick Marshall for Marketplace.

[Liana Byrne]

And I'm Liana Byrne with the Marketplace morning report from the BBC World Service. Have a great day. Thanks for listening.

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