31 July 2025 – On Thursday, the results of the Section 232 investigation into copper imports into the United States were announced. Some of the results were significantly different than expected. US tariff dispute: A deal for South Korea and two new punitive tariffs. EU: Is overcapacity in the steel sector artificially inflated?
Copper imports now also affected by US Section 232 tariffs
Since President Donald Trump ordered a Section 232 investigation into copper imports into the United States, it had been expected that the US government would also introduce them. Many copper traders had therefore already begun importing large quantities of copper into the United States and had built up considerable stocks.
Copper tariffs to be introduced in stages
However, the market was completely surprised by the fact that the US President’s proclamation was not as harsh as expected. Of the 50% tariffs on copper from 1 August 2025, only ‘all imports of semi-finished copper products and intensive copper derivative products’ mentioned in the annex to the proclamation are currently affected. This list was not yet available at the time of publication.
Contrary to expectations, refined copper products were only subject to a graduated tariff of 15% from 2027 and 30% from 2028. After this was announced, US COMEX copper futures, which had risen enormously in recent months, experienced a significant price correction of almost 22% downwards.
Overall, the initial indications of these split tariffs suggest that the manufacturing sector could be strengthened by this regulation. We will return to this topic as soon as we know the exact list of products that are actually affected.
Tariff dispute: A deal for South Korea and two new punitive tariffs
Yesterday, Donald Trump announced a deal with South Korea that guarantees the Asian country a general base tariff of 15%. When the Liberation Day tariffs were announced on 9 April, punitive tariffs of 25% were still looming.
India’s proximity to Russia is becoming a problem
President Trump wants to impose a base tariff rate of 25% plus an additional punitive tariff on India from 1 August. The background to this is extreme trade barriers and India’s heavy dependence on energy and arms imports from Russia.
Brazil hit with 40% tariff
Almost all Brazilian exports will be subject to a 40% US punitive tariff from 1 August. The US administration wants to prevent a national threat from Brazil and has justified this, among other things, by citing restrictions on freedom of expression in the South American country. This is an accusation that has also been levelled at the European Union on several occasions. The Trump administration has thus once again clearly demonstrated its commitment to freedom of expression. Even if freedom of expression is not always convenient, it is a precious good and a cornerstone of democracy.
Have steel overcapacities been artificially inflated?
With reference to our article yesterday, ‘France calls on EU to take action on steel’, considerable doubts have arisen about the credibility of the paper in the demand, led by France, for a successor to the EU Safeguard Measure on certain steel products.
One of the most important arguments put forward by supporters of a stricter successor to the Safeguard Measure is the so-called overcapacity in steel production. They repeatedly cite existing overcapacity of 600 million tonnes in 2024, rising to 720 million tonnes by 2027.
French paper provides deep insight into the overcapacity lie
The figures published in the French paper, particularly with regard to the capacity utilisation of European steelworks in 2023 compared to the period from 2012 to 2013 and the goal of returning to 85% utilisation, differ significantly from the figures recently published by the steel lobby for this period. According to latest EUROFER data, however, capacity utilisation in 2012/2013 was only 69%.
In doing so, the French have sufficiently (albeit unintentionally) proven that the alleged overcapacities in global steel production do not exist and are merely a political propaganda tool to justify trade protection measures and subsidies in Europe. These measures ultimately amount to indirect tax increases for small and medium-sized enterprises and European citizens, and severely curtail competitiveness in the EU.
Latest news
- France calls on EU to take action on steel
- Europe turns steel into a polemical red herring topic
- EU-US tariff dispute: An expensive deal for the European Union
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