- On 7 July Trump began sending letters to partners setting out the tariffs he would apply from August.
- On the 8th he announced a 50% tariff on copper, a material essential for electrification and data centres.
- Diversifying suppliers is as important as negotiating on price: whoever depends on a single one depends on someone else’s decision.
On 7 July 2025, Donald Trump began sending letters to trading partners to tell them the tariffs the United States would apply from August. On 8 July he also announced a 50% tariff on copper. These were two different decisions, but they pointed in the same direction: more unilateral measures, with short deadlines and less room for prior negotiation.
For companies that trade with the United States or depend on raw materials, the message was clear: planning would have to be done with incomplete information and on a calendar set by others. That makes flexibility and diversification more valuable, and makes it riskier to depend on a single supplier, a single customer or a single market. This is not pessimism, but an orderly way of managing risk when the environment changes frequently.
Letters, country by country
Instead of negotiating an agreement for each case, Trump chose to send letters to trading partners informing them of the tariffs he would apply from August. A unilateral and fast method, which left little room for prior negotiation and a great deal of uncertainty about the final result.
This system has the advantage of clarity: each country knows the rate that will apply to it and the date from which it will apply. But it leaves important questions open, such as whether there will be exceptions, whether the rates are final or negotiable and how recipients will respond. Until those doubts are cleared up, planning has to be done with scenarios and some margin. A letter is a clear signal of intentions, but it is wise to wait for the final text and its date of application before taking anything as settled.
Copper and raw materials
On 8 July a 50% tariff on copper was announced. Copper is essential for electrification and data centres: it is present in cables, power grids and electronic equipment, so a change in its cost affects many sectors at once.
When a raw material is taxed in this way, the effects are passed on in a chain: equipment that incorporates it becomes dearer, infrastructure projects are affected and the flows of trade in the metal between countries can change. Companies that buy copper, directly or as components, can review their costs and supply contracts from now on to stay ahead. It is also reasonable to ask suppliers how they plan to handle the change, because their answer indicates how much of it will end up in the final price.
Diversifying suppliers
Raw materials were turning into trade weapons: diversifying suppliers was as important as negotiating on price. For companies strongly dependent on one material or one origin, it is wise to identify alternatives, review supply contracts and assess how much of the cost can be passed on to the customer. It is best done product by product, because the ability to pass on cost varies greatly.
A good exercise is to list the five inputs or suppliers without which the business would not function and to ask, for each, what alternative exists, how long it would take to activate and how much it would cost. It is not about changing supplier for no reason, but about knowing what room for manoeuvre exists if someone else’s decision suddenly changes the conditions. That exercise, done calmly, is far cheaper than improvising it once the pressure has arrived.
Whoever depends on a single supplier or a single market depends on someone else’s decision.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
