Record-Breaking Copper Prices in Response to Trump’s 50% Tariff Announcement
Copper futures skyrocketed to an unprecedented high of $5.68 per pound on Tuesday. This surge followed President Donald Trump’s shocking announcement of a 50% tariff on copper imports during a Cabinet meeting. The news sent tremors through the global metal markets, resulting in a 13% price hike – the most significant one-day gain since 1989.
The tariff announcement aligns with Trump’s objective to bolster domestic copper production and repatriate manufacturing. Commerce Secretary Howard Lutnick indicated that the tariff would be in effect by the end of July. This move aligns copper duties with the existing 50% tariffs on steel and aluminum imports implemented in June. It’s a follow-up to a Section 232 national security investigation into copper imports initiated in February.
In 2024, the United States imported copper worth $17 billion, with Chile standing as the largest supplier at $6 billion. Industry analysts caution that the 50% tariff will act as a “massive tax on consumers”, potentially escalating costs for electronics, machinery, and electric vehicles. The tariff is expected to particularly impact Chile, Canada, and Mexico, which are the top copper suppliers to the U.S. market.