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Trump threatens 50% duty on copper, says chip, drug levies

coming

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Stocks mixed as markets become more inured to trade

developments

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Trump clarifies August 1 deadline firm, but remains open

to deal

offers

By Kevin Buckland

TOKYO, July 9 (Reuters) - The dollar traded close to a

2-1/2-week high versus major peers on Wednesday while copper hit

an all-time peak overnight after U.S. President Donald Trump

broadened his global trade war by threatening a 50% tariff on

the metal.

Trump also said levies on semiconductors and pharmaceuticals

were coming soon, weighing on Wall Street on Tuesday, with

futures indicating further weakness there on Wednesday.

However, stock markets around the Asia-Pacific were mixed,

as investors digested Trump's latest, shifting trade salvos.

Japan and South Korea are among major U.S. trading partners in

the region facing an August 1 deadline to reach a trade deal or

be subjected to new tariff rates, although Trump has sent mixed

signals on how flexible that date is.

On Monday, Trump said it was "firm, but not 100% firm,"

reinforcing the view among some in markets that the deadlines

are a negotiating tactic that the U.S. president will ultimately

back away from. On Tuesday though, Trump appeared to harden his

stance by saying, "No extensions will be granted."

Japan's Nikkei edged down 0.2%, shedding early small

gains. Australia's stock index declined 0.4%, and Hong

Kong's Hang Seng lost 0.9%.

At the same time, mainland Chinese blue chips rose

0.2%, and South Korea's KOSPI climbed 0.5%.

U.S. S&P 500 futures eased 0.1%, following a 0.1%

loss for the cash index on Tuesday that extended the 0.8%

drop that started the week.

"The delay in the imposition of new tariffs on some of the

U.S.'s major trading partners to August 1 has simultaneously

kicked the proverbial can down the road and supported the notion

that the loftier tariff rates are a negotiating ploy," Kyle

Rodda, senior financial markets analyst at Capital.com, wrote in

a note.

"As a result, the markets have been left hanging, and

waiting for a stronger catalyst to drive the next move."

Trump said on Tuesday that trade talks have been going well

with the European Union and China, though he added he is only

days away from sending a tariff letter to the EU.

Only two U.S. agreements, with Britain and Vietnam, have

been reached since Trump's April 2 "Liberation Day" reciprocal

tariffs' announcement roiled markets. In June, Washington and

China agreed on a framework covering tariff rates.

METALS, CURRENCIES

U.S. copper futures jumped by more than 10% to a record high

after Trump threatened new duties on the metal that is critical

to electric vehicles, military hardware, the power grid and many

consumer goods. They would join duties already in place for

steel, aluminium and automobile imports.

By contrast, copper futures in London and Shanghai fell on

Wednesday, as traders may not have sufficient time to ship much

to the United States following Trump's sudden tariff

announcement.

Trump also threatened 200% tariffs on drug imports, which he

said could be delayed by about a year.

The U.S. dollar continued its recent run of strength on

Wednesday, pushing to the highest since June 20 at 147.02

Japanese yen.

The dollar index, which measures the currency against

the yen and five other major rivals, edged up to 97.573, after

touching the highest since June 25 on Tuesday at 97.837.

The euro was steady at $1.1720, and sterling

was flat at $1.3585.

Gold found a floor at $3,301 per ounce, after

slumping more than 1% on Tuesday.

Oil prices edged back from Tuesday's two-week highs. Brent

crude futures were down 20 cents at $69.95 a barrel, and

U.S. West Texas Intermediate crude fell 21 cents to

$68.12 a barrel.