"Trump Announces 50% Copper Tariff..."Semiconductor and Pharmaceutical Tariffs to be Announced Soon"

Korea Economic Daily

Summary

President Trump stated that a 50% tariff would be imposed on copper, forecasting significant burdens for related companies.
He also mentioned that tariffs on semiconductors and pharmaceuticals would be announced soon, but no further details have been disclosed.
This round of tariffs is expected to reduce the profits of U.S.-based companies and potentially dampen additional investment due to rising production costs in the United States.

President Donald Trump revealed plans to impose item-specific tariffs during a Cabinet meeting at the White House on the 8th (local time), telling the attending press he would soon announce a copper tariff. He mentioned that the tariff rate would be 50%.

He also stated that tariffs on semiconductors and pharmaceuticals would soon be announced, but did not specify the details, rates, or when the measures would be implemented.

A 50% copper tariff is quite a high level. Previously, President Trump had started steel and aluminum tariffs at a rate of 25%, then announced an increase to 50% after visiting U.S. Steel. This time, copper will start at 50% from the outset.

In the case of steel and aluminum, tariffs now apply not just to raw material exports but also to derivative products, which has had a substantial impact on domestic companies. For example, POSCO and Hyundai Steel have to pay tariffs on automotive steel sheets supplied to Hyundai Motor Company in the U.S., but because derivative products such as washing machines, refrigerators, and dryers are also included, Samsung Electronics and LG Electronics must pay proportional tariffs according to the steel or aluminum content in their products.

Copper may cause similar damage. Korean battery companies operating in the U.S. purchase copper foil from Korea to manufacture products, and the tariffs will significantly reduce profits in these areas. As regulations banning the use of Chinese products are strengthened, the competitive advantage that could have been enjoyed may also be lost due to tariff measures.

The problem is that such actions affect not only the profits of individual companies but may also negatively impact American manufacturing revitalization, which President Trump advocates. Copper is a key material in various manufacturing sectors. Although it would be desirable to produce these materials domestically as President Trump desires, it is realistically difficult. Such measures are likely to increase domestic production costs in the U.S.

Companies already operating in the U.S. have complained that these measures make additional investment difficult, raising questions as to whether more investment can be drawn in.

Washington, D.C. = Sang-eun Lee, Correspondent selee@hankyung.com