Copper Prices Hit Record High as Trump Unveils 50% Tariffs

Summary

WSJ What’s News: Copper Prices Hit Record High as Trump Unveils 50% Tariffs

Release Date: July 8, 2025

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1. Introduction

In this episode of WSJ What’s News, host Alex Zosalev delves into significant developments impacting global markets and politics. The primary focus centers on the soaring copper prices driven by President Donald Trump’s announcement of unprecedented 50% tariffs on copper imports. Additionally, the episode explores the ongoing trade negotiations between the US and the EU, shifts in New York City’s political landscape, and other noteworthy business movements.

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2. US Supreme Court Lifts Ban on Trump's Federal Workforce Reduction

At the outset, Alex Zosalev reports a pivotal decision from the US Supreme Court that lifted a temporary halt on President Trump's initiative to reduce the federal workforce. This ruling paves the way for potential mass layoffs of federal employees, aligning with Trump’s broader agenda to streamline government operations.

Key Points:

• Executive Order: In February, President Trump issued an executive order aiming to significantly decrease the government's workforce.
• Legal Hurdle: A federal judge in San Francisco had previously blocked the implementation of this order in May.
• Supreme Court Decision: The Court’s unsigned order focused on the legality of the executive order itself without addressing the legality of the reorganization plans.

Implications: The lifting of the ban allows Trump to proceed with his plans, potentially leading to widespread layoffs within federal agencies. This move reflects the administration's commitment to reducing government size and expenditure.

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3. President Trump's Imposition of 50% Tariffs on Copper Imports

A central topic of the episode is President Trump’s announcement during a Cabinet meeting about imposing substantial tariffs on copper imports, which caused copper prices to surge by 13%, reaching an all-time high.

Notable Announcement:

President Trump [02:43]: "They're very tough, but now they're being very nice to us and we'll see what happens. We're probably two days off from sending them a letter. We are talking to them. I just want you to know a letter means a deal."

Details:

• Tariff Rates: Trump declared a 50% tariff on copper and additional 10% tariffs on BRICS nations (Brazil, Russia, India, China, and South Africa).
• Further Tariffs: Discussions included the possibility of imposing tariffs up to 200% on pharmaceuticals.
• Timeline: The tariffs are set to be implemented shortly, following detailed specifications to be communicated in upcoming letters to trading partners.

Impact: The sudden increase in tariffs has immediate effects on global copper markets, leading to record-high prices. This move is part of Trump's broader strategy to leverage tariffs in negotiations for more favorable trade deals.

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4. EU's Response and Trade Deal Negotiations

The episode features an in-depth analysis by WSJ reporter Kim McCrail on the European Union’s efforts to negotiate a trade deal with the US amidst Trump’s aggressive tariff stance.

Key Insights:

• EU Unity and Challenges [03:14]:
  • Kim McCrail: "Ultimately, everybody says they want a deal... we're seeing some signs of differences in view on what member states are willing to accept."
• Diverging National Interests:
  • Germany: Highly export-dependent, particularly its automotive industry, seeks exemptions from the existing 25% tariffs.
  • France: Less dependent on US exports, France is cautious about agreements perceived as US-favored, fearing negative implications for its global trade influence.

Outcome: Despite unified intentions, internal disagreements within the EU hinder the formation of a cohesive strategy, making it challenging to present a united front in negotiations with the US. McCrail emphasizes that any agreement brokered will likely leave the trade relationship between the US and EU in a worse state than before Trump’s tariffs were imposed.

Conclusion by McCrail [04:50]:

"The reality that everybody in Europe has come to accept is no matter what is agreed to, it's going to be worse than the situation was before President Trump started imposing tariffs on Europe and the rest of the world."

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5. Impact on US Financial Markets

The episode examines the immediate effects of Trump’s tariff announcements on major US stock indexes and business sentiment.

Market Reaction [05:20]:

• Dow Jones Industrial Average: Fell by approximately 0.4%.
• S&P 500: Slight decline of less than 0.1%.
• Nasdaq: Marginal gain of less than 0.1%.

Business Sentiment:

• National Federation of Independent Business’s Optimism Index: Dropped to 98.6 in June from expectations, influenced by excess inventories and ongoing economic uncertainty.

Analysis: The mixed performance of the stock indexes reflects investor apprehension regarding the stability of trade relations and the potential for increased costs due to higher tariffs, affecting corporate profits and market confidence.

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6. New York City Real Estate Developers Back Mayor Eric Adams

Shifting focus to local politics, the episode highlights a significant realignment within New York City's real estate sector, which is now supporting Mayor Eric Adams for reelection over former Governor Andrew Cuomo.

Details:

• Campaign Shifts [07:03]: Real estate executives, initially supporting Cuomo during the Democratic primary, have pivoted to backing Eric Adams following Cuomo’s primary defeat to Zoran Mamdani.
• Primary Concerns: Developers opposed Mamdani’s housing proposals, particularly rent freezes on rent-stabilized units, prompting a search for a more favorable candidate.
• Support Activities: Fundraisers and financial backing from real estate leaders are now consolidating around Adams, aiming to influence the upcoming general election.

Expert Insight:

Rebecca Picciotto [07:52]: "If they were in panic mode in the first couple days after the primary, they are now in realignment mode... the cards are definitely aligning around backing Adams and pivoting away from Cuomo."

Election Outlook: While it remains early, the real estate sector’s support for Adams signals potential shifts in the general election dynamics, though Mamdani remains a strong favorite within the Democratic-leaning city.

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7. Trump's Executive Order on Renewable Energy Tax Credits

President Trump issued an executive order tightening the eligibility criteria for clean energy tax credits, affecting renewable energy companies' operations and plans.

Context:

• Previous Legislation: Trump’s comprehensive tax and spending bill mandates that wind and solar farms must be operational by 2027 to qualify for tax credits, with constructions needing to commence within the next 12 months.

Analysis by Ed Ballard:

"A lot will depend on what will be considered as being under construction."

Implications:

• Definition of "Under Construction": The administration seeks to narrow the criteria, potentially limiting the number of projects eligible for tax incentives.
• Treasury Department’s Role: The effectiveness and impact of the executive order will largely hinge on how the Treasury defines construction parameters.

Political Dynamics:

McDonald's Advertiser [09:57]: "This executive order looks like a quid pro quo from President Trump to the Republican fiscal hawks who supported his sprawling tax and spending bill."

Conclusion: The executive order represents an attempt to balance support for renewable energy with fiscal conservatism, aiming to satisfy Republican fiscal priorities without undermining the broader clean energy agenda.

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8. Other Business Highlights

The episode concludes with various notable business movements and appointments:

• Goldman Sachs Hires Rishi Sunak:

  • Background: Former UK Prime Minister Rishi Sunak joins Goldman Sachs as a senior advisor, potentially enhancing the bank’s ability to attract corporate and governmental clients.

• Leadership Change at Hershey:

  • Kirk Tanner: Departing as Wendy’s CEO to become President and CEO of Hershey effective August 18.
  • Interim Leadership: Ken Cook, Wendy's CFO, appointed as interim CEO.
  • Search for Successor: Wendy's board initiates a search for a permanent CEO.

These developments signify strategic shifts in leadership within major corporations, reflecting ongoing changes in the global business landscape.

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9. Conclusion

Alex Zosalev wraps up the episode by summarizing the key events shaping the global economic and political environment. From unprecedented tariff impositions affecting commodity prices and international trade relations to significant political realignments in New York City and strategic corporate appointments, the episode underscores the interconnectedness of policy decisions and market dynamics.

Listeners are left with a comprehensive understanding of how President Trump’s aggressive trade policies are influencing both the US and global economies, the challenges within the EU’s negotiation efforts, and the implications for various sectors and leadership structures in prominent organizations.

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Produced by Pierre Biennime with supervising producer Michael Kosmides.

Transcript

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[Alex Zosalev]

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[Alex Zosalev]

Copper prices hit an all time high as President Trump threatens 50% tariffs on imports of the metal. Plus why EU member states can't agree on how to approach tariff negotiations with.

[Kim McCrail]

The US the reality that everybody in Europe has come to accept is no matter what is agreed to, it's going to be worse than the situation was before President Trump started imposing tariffs on Europe and the rest of the world.

[Alex Zosalev]

And why New York City real estate developers are backing Mayor Eric Adams to be reelected. It's Tuesday, July 8th. I'm Alex Zosalev for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. We start this evening with a decision from the US Supreme Court, which late this afternoon lifted a halt on President Trump's plan to shrink the federal workforce, a decision that clears the way for potential mass layoffs of federal workers. In February, Trump issued an executive order aimed at drastically reducing the government's workforce, but in May, a federal judge in San Francisco blocked it from taking effect. In an unsigned order, the Supreme Court said today it had based its decision on the legality of Trump's executive order itself and didn't really rule on whether the reorganization plans broke the law. President Trump has said that there will be no extensions to his Aug. 1 deadline to impose so called reciprocal tariff rates on many US Trading partners. In a post on social media a day after sending letters to various countries warning them of the levies, Trump said that more letters with specifics about tariff rates for individual trading partners will be sent in the coming days. Later, during a Cabinet meeting, he said that members of the BRICS bloc of nations Brazil, Russia, India, China and South Africa will pay an additional 10% tariff charge. He added that the levies would be imposed pretty soon. At the same meeting, the president said that the US would impose 50% tariffs on copper, sending the price of the metal soaring 13% to a record high. During the Cabinet meeting, Trump also discussed tariffs of up to 200% on pharmaceuticals, and he said that he might send a letter to the European Union within the next two days, threatening to impose stiff tariffs on the bloc if it doesn't reach a trade deal with the us.

[President Trump]

They're very tough, but now they're being very nice to us and we'll see what happens. We're probably two days off from sending them a letter. We are talking to them. I just want you to know a letter means a deal.

[Alex Zosalev]

Even as European officials close in on a trade deal with the us, member countries are still not aligned on how to handle Trump's demands. WSJ reporter Kim McCrail joins me now with more. Kim, where do EU countries stand on making a deal with the US?

[Kim McCrail]

Ultimately, everybody says they want a deal. And to be really clear about it, the member states have been actually to this point remarkably united. But we are seeing some signs of differences in view on what member states are willing to accept and how much they might be willing to let go of in service of a quick deal. So we know Germany is highly export dependent economy. Its car industry is extremely important and it's really focused and interested in trying to get some exemptions from the 25% tariffs that currently exist. Chancellor Mertz from Germany has been focused on trying to get a quick deal, on trying to move things forward to get some relief for the car industry and for some other specific industries that are important for Germany. On the other side, France is probably the country that is the most vocal about its concerns about accepting a deal that is maybe in their view, too heavily tilted in the US's favor. And a lot of the reason for that difference is first of all, the different economies, France is far less dependent on exports to the us. And France is also thinking from a political perspective, if you allow yourself to go for a deal that really favors the us, what does that mean for the strength you can project globally? What does it mean for other trade deals you might be looking to sign with other countries? So there's some concern there about the precedent that might set.

[Alex Zosalev]

No matter what the EU and US agree to, how will this compare to the trade relationship before President Trump imposed these most recent tariffs?

[Kim McCrail]

The reality that everybody in Europe has come to accept is no matter what is agreed to, it's going to be worse than the situation was before President Trump started imposing tariffs on Europe and the rest of the world. And Europeans would also argue from their perspective, it leaves the US worse off as well. But that will leave that trading relationship in worse shape from their point of view than it was before.

[Alex Zosalev]

That was Wall street journal reporter Kim McCrail. Thanks so much, Kim.

[Kim McCrail]

Thank you.

[Alex Zosalev]

Major U.S. indexes were mixed today after President Trump declared that he would hold firm on his latest deadline for trade deals. The dow fell about 0.4%. The S&P 500 slipped less than 0.1%, while the Nasdaq eked out a gain of less than 0.1%. The National Federation of Independent Business said today that its optimism index, a gauge of sentiment among small firms, edged down to 98.6 in June. That's slightly above its long term reading of 98, but a little lower than economists expected. Excess inventories and continued uncertainty were main factors behind the drop. Coming up, why New York City's real estate executives have turned their backs on former Governor Andrew Cuomo and support Mayor Adams for re election. That's after the break.

[McDonald's Advertiser]

Have you ever spotted McDonald's hot crispy fries right as they're being scooped into the carton?

[President Trump]

And time just stands still.

[Alex Zosalev]

For the months leading up to the Democratic primary election in June, real estate executives spent millions of dollars backing former Governor Andrew Cuomo to be the next mayor of New York City. But then Zoran Mamdani won that primary in an upset. Now developers are backing a new horse, Eric Adams, the city's current mayor. Rebecca Pichotto, covers real estate for the Journal. Rebecca, why are developers shifting their support to Adams now?

[Rebecca Picciotto]

As you noted in the wake of the Democratic primary where Cuomo conceded to Zo Ron Mamdani, the New York real estate community was in panic mode. They started organizing around what the path forward would look like to defeat Mamdani. The top line issue they are opposed to is his housing proposal to institute a rent freeze on rent stabilized units in New York. Cuomo's campaign was unimpressive to some real estate executives who I've spoken with so far. They felt like the momentum he was able to gain during the primary was not strong enough. They also are somewhat satisfied with how Adams has approached his housing agenda platform. But the idea is that Adams might just be a stronger candidate, or at least that's what they are banking on.

[Alex Zosalev]

What does their support look like in practice?

[Rebecca Picciotto]

If they were in panic mode in the first couple days after the primary, they are now in realignment mode. So they started off by putting together these initial meetings and calls to figure out what the path forward might look like. Now it sounds like that path forward is going to be backing Mayor Adams. So there was a fundraisers in the hamptons over the July 4th holiday weekend. There are a few fundraisers coming up this week put together by real estate executives, sometimes co hosting with other Wall street or tech executives. There are some real estate executives who are certainly figuring out where they're going to sign their next check and where that's going to go. So not everyone is fully settled, but the cards are definitely aligning around backing Adams and pivoting away from Cuomo.

[Alex Zosalev]

What is the picture that's shaping up for the general election in November?

[Rebecca Picciotto]

It's still early, and there was certainly a lot of real estate money behind Cuomo in the primary, and we saw how that worked out. But the general November election electorate is very different. Mamdani certainly is still the favorite as the Democratic nominee in a heavily Democratic city. That said, Mamdani is going to have to do a lot of work in the next few months to win over some of the biggest power players in the city.

[Alex Zosalev]

That was WSJ reporter Rebecca Picciotto. Thanks, Rebecca.

[Rebecca Picciotto]

Thanks so much for having me.

[Alex Zosalev]

Yesterday, President Trump issued an executive order calling for tight application of the eligibility rules for clean energy tax credits. It comes less than a week after his big, beautiful tax and spending bill became law. That law, in the end, requires wind and solar farms to be in service by 2027 to get tax credits and allows them to claim credits if construction starts in the next 12 months. What does all that mean for renewable energy companies? Well, Ed Ballard, who writes the Journal's climate and energy newsletter, says a lot will depend on what will be considered as being under construction.

[McDonald's Advertiser]

It's important to start by taking a step back and thinking about what happened last week with the passage of Trump's big tax and spending bill that didn't crack down as hard on renewable energy as some fiscal hawks in the Republican Party would have liked. So this executive order looks like a quid pro quo from President Trump to the Republican fiscal hawks who supported his sprawling tax and spending bill. Now what Trump wants is a way of defining under construction that doesn't go too easy on renewable energy. And a lot now is going to depend on how the Treasury Department responds to that request and what it comes up with.

[Alex Zosalev]

In other news, Goldman Sachs has hired former UK Prime Minister Rishi Sunak as a senior advisor. The one time world leader who worked at Goldman as an analyst in the early 2000s, could help the investment bank attract companies and governments as clients. Sunak became prime minister in the fall of 2022 and held the office until last year when his government lost a general election. He remains a lawmaker representing a constituency in northern England. In the UK Lawmakers are allowed to have second jobs as long as they don't serve as government ministers and Kirk Tanner, who brought spicy Takis toppings and spongebob squarepants to Wendy's as its chief executive, is departing the burger chain to take on the top role at Hershey. Effective August 18, Tanner will succeed Michelle Buck as President and CEO of the Chocolate company. Ken Cook, Wendy's chief financial officer, has been appointed as interim CEO, and its board has launched a search for a permanent successor. And that's what's news for this Tuesday afternoon. Additional sound in this episode courtesy of Reuters. Today's show was produced by Pierre Biennime with supervising producer Michael Kosmides. I'm Alex Osolev for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening. Sam.