Liberation Day 2.0 Is Coming. Here’s What That Means for Commodities

On Sunday, President Trump confirmed that new tariffs will begin August 1, with countries that fail to finalize trade agreements by July 9 facing sweeping penalties – including a 10% surcharge on BRICS-aligned nations and duties of up to 70% on select imports. The White House has dubbed the new regime Liberation Day 2.0 – a symbolic return to the aggressive trade stance that defined Trump’s first 100 days in office.

A Tariff Shock That Could Reshape the Commodity Landscape

Trump’s tariff revival has instantly thrown global supply chains into flux. The message from Treasury Secretary Scott Bessent was blunt: nations that don’t strike trade deals in time will “boomerang back” to Trump-era baseline tariffs – potentially raising average import duties from 3% to over 20%.

For Commodity traders, the implications are enormous.

“This could be the most significant macro repricing event of the second half of 2025,” says GSC Commodity Intelligence. “It’s not just a trade war – it’s a full-blown Commodity catalyst”.

From Gold, Oil to Copper and Wheat, the stage is now set for elevated volatility, policy-driven demand spikes and accelerated inflationary tailwinds.

The TACO Trade Is Back

As President Trump storms back onto the global stage with a fresh round of tariff threats – savvy traders are once again leaning into one of the most profitable strategies of his presidency: the TACO Trade – short for Trump Always Chickens Out.

The strategy is simple, yet deadly profitable: Trump announces eye-watering tariffs and markets panic. Equities sell off, the U.S dollar weakens and Commodities such as Gold rips higher as safe-haven demand explodes.

Then comes the twist: Days later, Trump walks it back. Tariffs are delayed, softened or rebranded as “negotiations.” The market breathes a sigh of relief and smart traders cash out with windfall profits.

“For Commodity traders, it’s become textbook,” says GSC. “Buy the panic, ride the rally, sell into the reversal – and reload ahead of the next headline.”

Inflation Is Back – And Commodities Could Be the Big Winner

By design, tariffs drive up costs. With Trump threatening to impose duties as high as 70%, average import prices could spike dramatically – fuelling inflation across everything from metals and energy to food.

In a world where central banks are already cautious about cutting rates too soon, this sets up a Stagflationary scenario: slower growth, stickier inflation and rising input costs.

It’s a nightmare for policymakers – but a dream for hard asset bulls.

The Pullback That Might Be the Last Great Buying Opportunity

Amid the noise, one truth is being missed: Commodities are not collapsing – they’re consolidating. Gold, Oil, Copper and Wheat have pulled back from recent highs, but remain structurally bullish.

GSC analysts see it as a gift.

In the midst of chaos lies opportunity. This might just be the last best chance to load up on Commodities before the next leg higher.

Whether you’re trading Metals, Energies or Agriculture, there’s only one question that matters now:

Are you positioned to capitalize on the greatest macro shift of our time – or are you still watching from the sidelines?