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

Release Date: July 8, 2025

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.

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.

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.

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."

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.

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.

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.

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.

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.

Produced by Pierre Biennime with supervising producer Michael Kosmides.