Jul 09, 2025 (Baystreet.ca via COMTEX) --
The U.S. President and the White House stepped up their trade war on Tuesday. After sending letters warning of tariffs starting on August 1 to its trade partners, President Trump is targeting the copper market.
The President threatened to apply 50% tariffs on copper imports. This would hurt the semiconductor and electric vehicle markets. Although copper futures rose by more than 10% after the announcements, investors should consider taking profits. Freeport-McMoran (FCX) and Teck (TECK) are at risk of breaking down from an uptrend that started in April.
Pharmaceutical stocks did not react to Trump reiterating threats to apply levies as high as 200%. Companies that bring pharmaceuticals into the country would face "like 200%" in added costs. Merck (MRK), Johnson & Johnson (JNJ), Novartis (NVS), and Novo Nordisk (NVO) are some of the drug stocks that traded higher despite the threat. In addition, Bristol-Myers (BMY), Pfizer (PFE), and AstraZeneca (AZN) are attractive stocks to consider holding. They are all trading at cheap valuations.
Markets do not expect the government to implement such a tariff in 12 - 18 months. By then, the midterms might change the White House's priorities.
Stock markets are growing increasingly complacent about the daily tariff threats. Until a country signs a deal that details, by item, tariff rates, a panic-induced sell-off is highly unlikely.
COMTEX_467159679/2559/2025-07-09T09:27:39
