Week in review
- Bank of Korea leaves base rate unchanged
- Reserve Bank of Australia held rates steady
- NFIB small business optimism index fell to 98.6 in June from 98.8 in May
Week ahead
- China GDP and activity data
- U.S. CPI and retail sales
- Japan CPI
Thought of the week
Over the week, President Trump raised attention towards the ongoing Section 232 investigations relating to sector tariffs, calling for a 50% tariff on copper and 200% on pharmaceuticals. While reciprocal tariffs fulfill the short-term goal for negotiations, universal tariffs fulfill the medium-term goal of increased revenue, sector tariffs are the ones that fulfill the long-term goal of national security and reshoring. Sector tariffs are also less likely to be challenged by courts. Thus, we see a material risk of sector tariffs lasting longer, although final rates remain uncertain. For copper, while the U.S. imports half the copper it consumes, imports only amount to $17bn in 2024. However, there are little domestic alternatives to copper given permit delays and high costs of setting up new facilities. Before tariffs are even implemented, the surge in copper prices could have material impact on copper-intensive good prices. Pharma represents a much larger import value, impacting Europe, although a 200% tariff could be difficult to sustain. Sector tariffs create differentiated impact on various markets and businesses, calling for careful impact assessments and stock-picking.
U.S. imports for select categories by market
USD billion, 2024
SSource: FactSet, UN Comtrade, J.P. Morgan Asset Management. *ROW refers to rest of the world. Pharmaceuticals (pharma) refer to all goods in HS 30 (Pharmaceutical Products). Auto & auto parts include goods in HS 8702 (Motor Vehicles for the Transport of Ten or More Persons), HS 8703 (Motor Cars and Other Motor Vehicles), HS 8706 (Chassis Fitted with Engines, for Motor Vehicles), HS 8707 (Bodies for Motor Vehicles) and HS 8708 (Parts and Accessories for Motor Vehicles). Semiconductors (semis) include HS 854231 (Processors and Controllers), HS 854232 (Memories), HS 854233 (Amplifiers) and HS 854239 (Other Electronic Integrated Circuits). Steel and aluminum refer to all goods in HS 72 (Iron and Steel), 73 (Articles of Iron or Steel) and 76 (Aluminum and Articles Thereof) and 74 (Copper and articles thereof). Data reflect most recently available as of 11/07/25.
Market data
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All returns in local currency unless stated otherwise.
Currencies’ return are based on foreign currencies per U.S. dollar. An appreciation of the foreign currency against the U.S. dollar would be positive and a depreciation of the foreign currency against the U.S. dollar would be negative.