Copper tariffs inflate prices and prompt recession fears

In the United States, a recent spike in copper tariffs has raised significant concerns about inflation and recession. The tariffs, which took many by surprise due to their unexpected height, are likely to influence the Federal Reserve's deliberations on interest rates as the July meeting approaches. The situation was further complicated when President Donald Trump indicated plans to consider imposing substantial tariffs on pharmaceuticals, potentially reaching as high as 200%. This move is aimed at boosting U.S. manufacturing but carries risks for various sectors in the economy. Despite the mixed reactions in the markets, further data on how these tariffs will ultimately affect the economy will only be available after the Fed meets, which suggests that they may delay any decisions until October. While some companies, such as Nvidia, showed strong performance, others like Amazon experienced a decline as they entered the busy Prime Days period. As Delta Airlines prepared to announce its earnings, which are part of an upcoming earnings season, investors are advised to stick with their long-term investment strategies amidst these fluctuations in the market and with concerns about tariffs and inflation ongoing.