Trump confirms no extension on tariff deadline, threatens 200% tax on drug imports

US President Donald Trump has confirmed that he will not extend the tariff deadline further and will proceed with the stringent customs tariffs set for early August. Trump has also warned of a potential 200% import tax on copper and pharmaceutical products if manufacturing is not moved to the United States.

According to Bloomberg, Trump stated via social media and during a Cabinet meeting on Tuesday (July 8) that he would not delay the imposition of the "countermeasure" tariffs. These tariffs are scheduled to begin in early August, and Trump indicated that new tariffs may be introduced for imports of copper and pharmaceutical products.

This decision comes after traders ignored several letters and orders from the administration, which had previously postponed the deadline for the countermeasure tariffs and announced new tariff rates for over ten countries that had failed to reach trade agreements.

On Tuesday, Trump reaffirmed his commitment to heavily taxing imports from other countries. He stated that he would impose a 50% import tariff on copper, which caused commodity prices to surge to their highest levels since at least 1988.

Despite progress with the European Union on a trade deal, Trump expressed his dissatisfaction with EU tariffs and fines targeting US tech companies, which could prompt him to unilaterally announce new tariffs within two days.

Just hours after claiming he was close to reaching a trade deal with India, Trump said that he would still impose an additional 10% import tax on goods from India after the country joined the BRICS alliance of developing nations.

Furthermore, Trump warned that pharmaceutical companies might face a 200% import tariff unless they relocate their manufacturing bases to the US by next year.

"We want good relations, but in every case, they’ve treated us worse than I’ve treated them," Trump commented regarding his trade partners.

As investors assess the latest trade news, the S&P 500 index wavers, and long-term US government bonds decline alongside global bond markets.

Trump began Tuesday by posting on social media that his new tariffs would take effect in early August, despite speculation that he might delay the extremely high tariff rates again.

"Tariffs will start on August 1, 2025, with no changes up to today, and there will be no further extensions," Trump wrote on the Truth Social platform on Tuesday. "In other words, all payments are due from August 1, 2025 onwards, and no further extensions will be granted."

On Monday, Trump began notifying trade partners of the new tariff rates, originally set for this week, giving countries a final chance to conclude trade talks with his administration. Howard Lutnick, Secretary of Commerce, told CNBC shortly after the Cabinet meeting on Tuesday that he expected 15-20 more letters to be sent in the next two days.

However, the new letters, which impose tariffs on countries that have not reached agreements, also came with an executive order delaying the tariff deadline by three weeks, effectively extending the negotiation period for trading partners.

Trump’s signal that he is still negotiating further deals has sparked speculation in Washington and Wall Street that the President may not proceed with his latest tariff threats.

On Tuesday, Trump adopted a more aggressive tone when speaking to reporters during the Cabinet meeting. He mentioned that although he previously stated he was close to reaching a trade deal with India, he still planned to punish India for joining the BRICS forum. Trump described the group of developing nations as "staged to hurt us."

“I can play that game too, so anyone in the BRICS group will receive an additional 10% tariff,” Trump said.

Trump also mentioned that he would send a letter to the European Union to impose unilateral tariffs, despite reports of progress in trade talks with the bloc. The President noted that while European countries currently "treat us very well," he remained frustrated with the trade deficit and long-standing digital services taxes and penalties affecting US tech companies.

“We likely have two more days to send letters to them,” Trump said.

Additionally, Trump stated he would impose a 60% or 70% tariff on some countries as he sends additional letters in the coming days.

“I just want you to know the letters mean ‘deal’,” Trump said.

Trump threatens 50% copper tariff and 200% drug import tax

Trump also stated that he still plans to impose tariffs on targeted industries, including pharmaceuticals, semiconductors, and metals.

“I believe we will impose a 50% import tariff on copper,” Trump said when asked by reporters about the tariff rate for these goods.

Trump also mentioned that he expects to give pharmaceutical manufacturers time to relocate production to the US before imposing a 200% import tax on their products.