Why did Trump sing out buyer with 50%of customs?

In a move indicating a new escalation in the race to control strategic resources, US President Donald Trump imposed 50% Customs on brass imports, which are aimed at a mineral that is no longer just an industrial commodity, but rather turned a new oil into the clean energy economy and advanced technologies. The decision, which would be scheduled to come into effect today (August 1), reflects a mixture of economic and security goals, amid an increasingly US dependence on imports, and a decrease in local refinement capabilities. While Washington seeks to rebuild its industrial supply chains, the procedure threatens to increase costs for both manufacturers and consumers, and place the top exporters by Chile, Canada and Peru in the commercial pressure goal. How to transform copper from an industrial commodity to a global print page? The buyer becomes a global printing card due to its increasing use in defense industries and clean technology. According to the “Financial Times”, modern wars and escalating military spending have revealed a severe shortage of biological minerals such as copper, which is needed in the production of ammunition, drones and control networks. It is estimated that military demand only adds about 500,000 tonnes to world consumption annually, at a time when governments are on their way to improve their strategic shares. Parallel indicates the “Unctad” report that the global shift to renewable energy, data centers and electric cars by 2040 increases the demand for copper by about 40%. The markets lack adequate investment to ensure supplies, which make buyer as a new oil ‘in the era of the green economy, and put it in the heart of international industrial and commercial competition. The Financial Times warns that metal shares in the United States are not sufficient to cover the one -year of conflict, according to an analysis issued by the Carnegie Center. This structural shortage of supplies increases the use of copper as a printing card in commercial and military policy, and reveals the fragility of global supply chains in light of increasing demand. Why did Trump target copper with customs duties? Trump imposed customs duties on brass imports due to a mix of industrial, political and security goals, as part of a broader strategy to increase US economic independence. Trump announced through “Truth Social” that this step is aimed at “building a dominant copper industry”, and the fees were higher than expected, which led to a recorder jump in New York copper prices, as customers argued before the start of the application to import consignments. This decision reflects a reality in which the US economy depends on imports to cover local demand, as consumption last year amounted to 1.6 million tonnes compared to the production of no more than 850 thousand tons. Chile, Canada and Mexico are the most prominent exporters to the US market, while the refinement capacity is limited to only two fascinations in the country, compared to the expansion of the mosque in China. The Trump administration believes that these fees are needed to counteract dumping and encourage local production. Also read: Trump’s brass graphics: a political maneuver or a risky bet? Despite the presence of parked mining projects such as “resolution” and “Twin Metals”, and the “Hayden” fascinator, which can add 300 million pounds of pure copper, the development of new production capabilities needs years. While the administration seeks to reduce the dependence on the outside, US manufacturers are expected to bear higher costs in the short term. Why 50%? What are the high indications of the percentage? The high percentage, which is one of the highest on minerals in the history of modern US commercial policy, reflects the Trump administration’s awareness of copper sensitivity as a basic material in defense industries and a shift to clean energy. The choice of this level of fees is aimed at reducing the dependence on imports, especially of countries that control supply chains such as Chile and China, and also send a fixed message to the market that is on the way the United States is to rebuild its refinement capacity internally, according to “Financial Times”. Trump’s buyer fees. What are its causes and will its purpose be performed? .. details here and despite the exclusion of raw and repeated buyer of the decision, the market received fees as a sign from the beginning of a new stage of protection policies associated with strategic metals, which led to a sharp drop in prices that were more than 17%, immediately after the announcement, according to Reuters reports. In the comments on the decision, billionaire Robert Friedland, founder of Ivanhoe Electric, described the step as a ‘strategic smart’ and is needed to revive the US mineral sector, which added the financial times that the fees will “wake up of the broken supply chains” in mineral basic. Friedland was of the opinion that the procedure contained a strong message that the United States can no longer rely on the outside to provide important resources included in the manufacture of weapons, electric cars and power grids. He was of the opinion that buyer is at the heart of global political geography and in recent decades is no less important than oil. Chile is drawing the fees .. and the fate of the rest of the senior exporters as they look at the list of copper executive countries to America, the image is increasing complicated. US customs data show that more than 90%of refined copper imports come from three main countries: Chile (70%), Canada (17%) and Peru (7%), followed by the Democratic Republic of Congo and Mexico with lower dimensions. This major focus shows that any change in US commercial policy will have direct consequences for senior exporters, led by Chile, whose exports of buyer to the United States rose 26.2% last year, to reach 5.8 billion dollars and still record $ 4.2 billion in the first half of this year. For Chili, the entry into customs peppers in implementation can lead to a sharp decline in export income, inflationary pressure and a decline in the value of the bizo due to the decrease in the dollar flow, according to the analysis company “BN Airksas”, and given that buyer can form about 10%, any of the American. minority sector, and it is more than the export, which is more than executive sector execution. leads to a surplus in the world market, weakening the margins of Chilean businesses and even threatening to freeze investments in new projects. The high cost of import and energy can also force the central bank to hold interest rates for a longer period, raising the cost of local financing and putting extra pressure on the economy. The impact of the proposed US drawings extends to the rest of the senior copper exporters, especially Canada, Mexico and Peru, which is increasingly dependent on exporting semi -processed products to the US market, such as tubes, wires and skins. According to “Reuters”, these countries may face direct losses in the market share and profit margins, especially in light of the United States’ inability to provide fast local alternatives. The Financial Times estimates that exaggeration in the use of customs duties can lead to disorders in supply chains and the decline in new investments in the melting and processing of factories in North America. Regarding Grupo Mexico, one of the largest producers in the region, he announced that it is re -evaluating his planned investments in the United States, according to Reuters, which reflects a state of anticipation and uncertainty between regional exporters. How can the US industry be influenced by the decision? Investopedia report indicates that the new US customs duties at 50% on brass imports, which will be applied on August 1, can be a major burden on local local industries as an initial material. Although prices have already risen in anticipation of the decision, the high tariff buyer will make more expensive, at a time when the United States does not have local alternatives ready to compensate the shortage as it requires the creation of mines and minerals for years. US industries are based on imports to meet about half of their copper needs, especially from Chile, Canada, Peru and Mexico. With the absence of alternatives, the fees are expected to increase production costs and increase inflationary pressure, which could result in some businesses reducing or transferring production abroad, according to what Bank of America and Inc) indicated analysts. You may also be interested in: Copper Dispatches Rocket Time to reach America before you impose a 50% fee according to Stephen Hair of “Oxford Economics” in the short term, other businesses will feel “pressure” if they have to buy buyer at high prices. It comes at a time when the industrial economy is uncertain, which threatens a decline in the margins of profit and a difficult stage for the producers, dependent on buyer.