Copper prices declined during Wednesday’s trading after Tuesday’s sharp rally, which was driven by new tariffs announced by U.S. President Donald Trump on the red industrial metal.

On Tuesday, President Trump announced a 50% tariff on copper imports and revealed that long-awaited duties on semiconductors and pharmaceuticals would be announced soon, in a move that expands the scope of his ongoing trade war that has shaken global markets.

The announcement came just one day after Trump imposed steep tariffs on 14 trade partners, including major U.S. suppliers like South Korea and Japan. He also renewed his threat to impose 10% tariffs on imports from Brazil, India, and other BRICS nations.

While noting that trade talks were progressing well with the European Union and China, Trump added that he was just days away from sending a tariff notice to the EU.

The remarks, delivered during a Cabinet meeting at the White House, sparked further concern in a global economy already struggling with the fallout from tariffs either imposed or threatened on exports to the world’s largest consumer market.

Following Trump’s announcement, U.S. copper futures jumped more than 10% amid expectations that the tariffs will join existing duties on steel, aluminum, and automobiles. Copper is considered a vital input for electric vehicles, military equipment, power grids, and various consumer goods. The effective date of the new tariffs has yet to be announced.

Shares of U.S. pharmaceutical companies also fell after Trump threatened to impose tariffs of up to 200% on imported drugs, though he noted implementation might be delayed for nearly a year.

In response, other countries signaled they would try to mitigate the impact of these measures, especially after Trump postponed the Wednesday tariff deadline to August 1.

The Trump administration had previously promised “deals within 90 days” after unveiling in April a tariff list tailored to each country. So far, only two deals have been reached — one with the United Kingdom and one with Vietnam. Trump said an agreement with India is close.

“It’s time for the United States to start collecting money from countries that have been robbing us,” Trump said. “They’ve been laughing behind our backs, thinking we were stupid.”

In a post on Truth Social Tuesday evening, Trump said “no fewer than seven tariff notifications” would be issued Wednesday morning, with more to follow in the afternoon. He gave no further details.

Many trade partners around the world have complained that even basic framework negotiations are difficult due to the unpredictable manner in which new tariffs are announced, making internal compromise more difficult.

Highest tariff level since 1934

According to Yale University’s Budget Lab, Trump’s new tariffs on imports from 14 countries raised the effective tariff rate on American consumers to 17.6%, up from 15.8% previously, marking the highest level in 90 years.

The Trump administration promotes the tariffs as a key source of revenue. Treasury Secretary Scott Bessent said the U.S. has collected about $100 billion in tariffs so far, with projections reaching $300 billion by year-end, compared to an average of $80 billion annually in recent years.

U.S. markets edged lower on Tuesday, with the S&P 500 closing slightly down after a steep selloff on Monday following the tariff announcement.

Trump said he would “likely” notify the European Union within two days of the tariff rates expected on its exports to the U.S., noting that the 27-nation bloc has been “very good” to his administration in ongoing trade talks.

According to European sources, the EU aims to reach a deal before August 1 that includes concessions in key export sectors such as aircraft, medical equipment, and spirits. Brussels is also weighing a framework that would protect European carmakers with major manufacturing presence inside the U.S.

However, German Finance Minister Lars Klingbeil warned that the EU is prepared to retaliate if necessary. “If we cannot reach a fair trade deal with the United States,” he told parliament, “then the European Union is ready to take countermeasures.”

Japan, which may face a 25% tariff, is seeking exemptions to protect its massive automotive industry, while refusing to make concessions on agriculture — a sector with strong domestic political influence. Chief trade negotiator Ryusei Akazawa said a quick deal is unlikely.

South Korea, which also faces potential 25% tariffs, said it would intensify trade talks in the coming weeks “to reach a mutually beneficial outcome.”

As for relations with China, Washington and Beijing agreed on a general trade framework in June, though many details remain unclear. Investors are watching closely to see whether the deal collapses before the U.S. deadline of August 12 or results in a lasting truce.

“We’ve had a very good relationship with China lately,” Trump said. “We’re getting along extremely well. They’ve been very fair in our trade agreement, frankly.”

He added that he is in regular contact with Chinese President Xi Jinping.

New tariff list targeting multiple countries

Trump announced that the United States would impose:

25% tariffs on goods from Tunisia, Malaysia, Kazakhstan

30% tariffs on South Africa and Bosnia and Herzegovina

32% tariffs on Indonesia

35% tariffs on Serbia and Bangladesh

36% tariffs on Cambodia and Thailand

40% tariffs on Laos and Myanmar

Meanwhile, the U.S. Dollar Index rose slightly by less than 0.1% to 97.5 points at 16:00 GMT, recording a high of 97.7 and a low of 97.4.

In U.S. trading, copper futures for September delivery fell 3% to $5.51 per pound at 15:55 GMT.

Bitcoin remains stable above the $109,000 mark in Wednesday’s trading, as investors adopt a cautious stance ahead of the release of the U.S. Federal Reserve’s FOMC meeting minutes, seeking any clues regarding the potential path of interest rate cuts.

In the absence of market-moving news, traders are closely watching for signals in the minutes that could offer direction for monetary policy, potentially triggering sharp moves in the price of the world’s largest digital asset by market cap.

Despite this cautious tone, developments related to exchange-traded funds have generated short-term optimism, particularly after Trump Media filed for the creation of five crypto-linked ETFs. Meanwhile, spot Bitcoin funds recorded $80 million in net inflows on Tuesday.

FOMC minutes may trigger volatility in Bitcoin price

Bitcoin continued to trade sideways around the $109,000 level during Wednesday’s European session, with no major catalysts. However, this period of stability may end during the U.S. session with the release of the Federal Open Market Committee’s meeting minutes later today, which could provide more clarity on the interest rate outlook and spark a fresh directional move in Bitcoin.

According to a report by K33 Research on Tuesday, Bitcoin has remained within a narrow range with low daily volatility since May 22, leading to a noticeable decline in implied volatility across derivatives market options.

Although Bitcoin has made several upward attempts, chart data shows that implied volatility remains at its lowest level of the year, following another week of muted activity. Option skews remain neutral, reflecting a prevailing “wait-and-see” approach among traders.

Trump Media files to launch ‘Crypto Blue Chip ETF’

On Tuesday, Trump Media submitted an official S-1 registration filing to the U.S. Securities and Exchange Commission (SEC) for a new ETF named the “Crypto Blue Chip ETF,” featuring five leading cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cronos (CRO), and Ripple (XRP).

According to the filing details, the fund aims to allocate 70% of its assets to Bitcoin, 15% to Ethereum, 8% to Solana, 5% to Cronos, and 2% to Ripple.

Approval of the fund would be seen as a strong bullish signal for the crypto market, particularly Bitcoin, by enhancing adoption and improving liquidity.

Beyond institutional filings, demand from large investors for Bitcoin remains strong. Data from SoSoValue shows that spot Bitcoin funds recorded net inflows of $80.08 million on Tuesday, marking the fourth consecutive day of positive inflows since July 2.

Bitcoin outlook: price holding near key support

Bitcoin price has continued to move within a narrow range near the upper boundary of the consolidation zone previously broken at $108,355 since Friday. On Monday, the price dipped slightly to retest this level, then recovered modestly on Tuesday. As of Wednesday’s writing, the price is hovering around $108,700.

If this level continues to hold as technical support, Bitcoin may resume its upward path toward the previous all-time high recorded on May 22 at $111,980.

The Relative Strength Index (RSI) on the daily chart reads 55, indicating bullish momentum as it remains above the neutral 50 mark. Meanwhile, the MACD lines appear intertwined, reflecting indecision among traders regarding the next directional move.

In the event of a downside correction and a close below the $108,355 support, Bitcoin could retreat to test the lower boundary of the previous consolidation zone at $105,333 — a level that roughly coincides with the 50-day Exponential Moving Average (EMA) at $105,414, making it a critical support area.

Oil prices rose on Wednesday, maintaining their highest levels since June 23, supported by attacks on ships in the Red Sea, alongside concerns over sharp U.S. tariffs on copper and expectations of reduced oil production in the United States.

Brent crude futures rose by 48 cents, or 0.7%, to $70.63 per barrel by 08:55 GMT, while U.S. West Texas Intermediate crude climbed by 51 cents, or 0.8%, to $68.84 per barrel.

After months of calm in the Red Sea, attacks resumed last week in this vital global shipping route. Sources indicated that the Iran-backed Houthi militia in Yemen was behind the latest incidents.

A rescue operation is currently underway for the crew of a cargo ship that sank in the Red Sea following an attack that killed at least four crew members. The Houthis have not yet claimed responsibility for the strike.

Oil prices were also supported by a report from the U.S. Energy Information Administration released Tuesday, which projected lower oil output in 2025 compared to earlier forecasts, citing slower activity among American producers due to falling prices.

On Tuesday, U.S. President Donald Trump said he would announce a 50% tariff on copper imports, aiming to boost domestic production of the metal — vital for electric vehicles, military equipment, power grids, and a range of consumer goods.

This announcement came as Trump postponed some tariff deadlines to August 1, offering key trading partners hope that deals could be reached to ease the tariffs, though many companies remain uncertain about the future direction.

Despite concerns that tariffs may curb oil demand, strong travel activity during the U.S. Fourth of July holiday supported consumption, and data suggested a likely increase of 7.1 million barrels in U.S. crude stockpiles.

In a research note, oil brokerage PVM said: “With attacks in the Red Sea and increased summer fuel consumption in the U.S., expectations of a future supply glut should take a back seat to short-term realities.”

Official U.S. crude inventory data from the Energy Information Administration is due at 14:30 GMT.

Meanwhile, OPEC+ oil producers are preparing for another significant production boost in September as they continue to unwind voluntary supply cuts previously agreed upon by eight member states. The UAE is also transitioning to a higher production quota, according to five informed sources.

This follows the group’s Saturday announcement of a supply increase of 548,000 barrels per day for August.

Suvro Sarkar, head of the energy sector team at DBS Bank, said: “Oil prices have shown surprising resilience in the face of accelerating supply increases from OPEC+.”

UAE Energy Minister Suhail Al Mazrouei said Wednesday that oil markets are absorbing OPEC+ supply hikes without stockpile build-ups, indicating that markets are “thirsty” for more oil.

“You can see that even with the continuous increases over several months, we haven’t seen significant stockpile accumulation — meaning the market genuinely needed these volumes,” Mazrouei added.

The U.S. dollar climbed to its highest level against the Japanese yen in more than two weeks on Wednesday, following President Donald Trump's pledge to issue further trade-related announcements after imposing 25% tariffs on Japan and other trading partners.

The dollar had already posted gains against major currencies on Tuesday, buoyed by Trump’s latest tariff threats, which are set to take effect on August 1. However, he later signaled openness to extending the deadline if countries submit proposals.

Trump wrote on social media that announcements concerning “at least seven countries” would be made on Wednesday regarding trade, without providing further details. He also threatened to impose a 50% tariff on copper imports and said he would soon implement long-delayed tariffs on semiconductors and pharmaceuticals.

Despite the recent strength, the U.S. dollar index – which tracks the greenback against a basket of six major currencies – remains more than 6% lower since Trump unveiled a wave of reciprocal tariffs on April 2 as part of what he called “Liberation Day.” Those tariffs initially triggered a broad market selloff before most were postponed to allow time for bilateral trade negotiations.

Ray Attrill, head of FX strategy at National Australia Bank, noted that “the market’s second take on the reciprocal tariff announcements was actually negative for the dollar, based on the belief that the damage could be just as severe – if not worse – for the U.S. as it is for other countries.”

He added that “markets are still hesitant to take decisive positions given the prevailing uncertainty.”

The dollar rose 0.1% to 146.75 yen after touching 147.19, marking a weekly gain of 1.5% so far – its largest against the yen since mid-December.

Japan, a major export-driven economy and key U.S. trading partner, remains far from reaching a deal. The yen has weakened significantly ahead of the tariff deadline as multiple rounds of negotiations have failed to yield progress. Japanese policymakers are increasingly focused on crucial upcoming elections.

Speculation that opposition parties might win seats in the upper house and push for greater fiscal stimulus has weighed on Japanese government bonds this week, driving a sharp rise in long-term yields.

U.S. Treasury Secretary Scott Bessent, one of Washington’s lead negotiators with Tokyo, is expected to attend Expo 2025 in Osaka later this month, which could open the door to further discussions.

IG analyst Tony Sycamore noted that “talks appear to be stalled over the issue of rice market protections in Japan, and it’s hard to imagine the Japanese backing down on this demand.”

“The dollar’s rise against the yen was also supported by a continued rally in U.S. bond yields for a fifth consecutive day, along with a sharp climb in Japanese yields due to fiscal concerns ahead of the July 20 election.”

The euro remained steady at $1.171, as markets awaited clarity on whether the European Union would receive a tariff notice from Washington. According to EU sources cited by Reuters, there is cautious optimism that the bloc could be granted exemptions from the standard 10% rate.

Investors are also looking ahead to the release of the Federal Reserve’s latest meeting minutes later today, which may offer clearer insights into the path of U.S. monetary policy.

Commerzbank analyst Antje Praefcke said the euro’s strength against the dollar was also tied to interest rate differentials. “Markets are currently pricing in nearly two rate cuts from the Fed by year-end, compared to just one from the European Central Bank,” she explained.

The dollar index was flat at 97.60, while the British pound edged higher to $1.36.

The New Zealand dollar rose 0.1% to $0.60, after the local central bank held its benchmark rate steady as expected and flagged near-term inflationary risks.