Drug Shortage Coming? New 200% Drug Tariffs, 50% Copper Tariffs Shock The World

Watch on YouTube ↗  |  July 10, 2025 at 04:04  |  8:06  |  The David Lin Report
Speakers
David Lin — Founder & Host, The David Lin Report / ex-Anchor, Kitco News
Ron Butler — Principal, Butler Mortgage

Summary

David Lin recaps the biggest market stories from July 9, 2025. Nvidia briefly became the first $4 trillion company, while Trump announced 50% copper tariffs and threatened pharmaceutical imports with tariffs as high as 200%. Mortgage applications jumped, Vietnam was highlighted as a supply-chain winner, China's deflation deepened, and Fed minutes showed a split on tariff-driven inflation risks.

  • Nvidia hit a new all-time high and briefly reached a $4 trillion market capitalization.
  • Trump announced a 50% copper tariff that sent copper up 13% and created a potential US premium.
  • Pharmaceutical imports face tariffs as high as 200%, raising drug shortage and cost concerns.
  • Mortgage applications jumped 9.4% as the 30-year rate dipped to 6.77%.
  • Vietnam was highlighted as a supply-chain winner due to a lower relative tariff rate.
  • China's producer prices fell 3.6% year-over-year, signaling domestic deflation.
  • Fed minutes showed officials split on whether tariffs would have persistent inflation effects.
  • Ron Butler expects no substantial mortgage rate drop in coming months, with cuts possibly late in the year.
Ideas
David Lin Founder & Host, The David Lin Report / ex-Anchor, Kitco News 1:26
Copper faces tariff-driven premium.
President Trump announced a surprise 50% copper tariff, which sent copper soaring 13% in its largest single-day gain since 1989 to close at $5.69 per pound. Commerce Secretary Howard Lutnick confirmed the duties likely take effect by August 1, leaving US manufacturers less than a month to brace for a premium that could reach $5,000 per metric ton over global copper prices.
COPPER HIGH
David Lin Founder & Host, The David Lin Report / ex-Anchor, Kitco News 2:19
Pharma tariffs risk drug shortages.
Trump threatened pharmaceutical imports with tariffs as high as 200%, while suggesting drug makers could have about a year to a year and a half to relocate production to the US. The pharmaceutical industry warned that such levies would increase costs and potentially create drug shortages while diverting resources from R&D, even as major drug makers have already announced billions in new US manufacturing investments.
XLV HIGH
Ron Butler Principal, Butler Mortgage 3:42
Treasury yields stay elevated near term.
Ron Butler sees no particular reason for mortgage rates to drop substantially in the coming months. He notes the Fed has not taken cuts off the table, the dot plot still calls for cuts this year, and inflation may not be as sticky as the Fed has described, so there may be some rate cuts and lower Treasury yields, but not until the end of the year, implying another sluggish two quarters.
US Treasury yields MED
David Lin Founder & Host, The David Lin Report / ex-Anchor, Kitco News 4:54
Vietnam wins supply-chain shift.
Vietnam emerged as the clearest winner in the reshuffling of global supply chains. A 20% tariff rate negotiated with Washington positions Vietnam favorably against regional competitors facing levies of 25% or higher, potentially accelerating the migration of manufacturing capacity from China to Vietnam. Even with Trump's 40% penalty on transshipped goods, Vietnam remains an attractive production base for companies seeking to serve American consumers, and Vietnamese stocks have rallied to three-year highs.
VNM HIGH
David Lin Founder & Host, The David Lin Report / ex-Anchor, Kitco News 6:12
China faces deflationary trade pressure.
China's producer prices dropped 3.6% year-over-year in June, the steepest decline in nearly two years, as price wars spread through an economy already grappling with weak consumer demand. While export growth has been resilient, the deflationary spiral in domestic markets suggests Beijing's ability to absorb American trade pressures may be more limited than it appears, making China a cautionary investment case.
FXI MED
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This The David Lin Report video, published July 10, 2025, features David Lin, Ron Butler discussing COPPER, XLV, US Treasury yields, VNM, FXI. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: David Lin, Ron Butler  · Tickers: COPPER, XLV, US Treasury yields, VNM, FXI