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Trump Imposes 50% Tariff on Copper Imports, Sparking Price Surge

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Steel wires at a recycling facility in Salt Lake City, Utah, US, on Thursday, May 8, 2025.
Niki Chan Wylie | Bloomberg | Getty Images

On Wednesday, U.S. President Donald Trump announced a 50% tariff on copper imports, which will take effect on August 1.

This decision follows a national security evaluation received by the President, as he detailed in a post on Truth Social.

“I am announcing a 50% TARIFF on Copper, effective August 1, 2025, after receiving a robust NATIONAL SECURITY ASSURANCE,” Trump stated.

He elaborated on the importance of copper, listing its applications in semiconductors, military aircraft, ships, ammunition, data centers, lithium-ion batteries, radar systems, missile defense, and hypersonic weaponry. Trump emphasized that copper ranks as the second most utilized material by the Department of Defense.

Adam Whiteley, an analyst at BNY Investments, discussed the implications of this move during an appearance on Finance Newso’s “Squawk Box,” pointing out that the tariff reflects Trump’s broader trade policy aimed at bolstering national security.

“Copper is likely classified among tariffs that are related to national security. This category encompasses negotiating tactics, addressing trade disparities, and includes minerals, semiconductors, and pharmaceuticals,” Whiteley explained.

Following Trump’s announcement, copper prices experienced a notable increase, soaring by 2.62%. This rise compounded gains from the previous session, where prices surged by 13.12%, marking the most significant single-day increase since 1989.

However, three-month benchmark copper futures on the London Metal Exchange fell by 1.63%, settling at $9,630.50 per ton as noted at 9:20 a.m. Singapore time. This decrease highlights the developing price disparity between U.S. copper and global benchmarks.

According to Benchmark Mineral Intelligence, U.S. consumers should prepare for prices around $15,000 per metric ton for copper, in stark contrast to the $10,000 per ton average seen globally by August.

This price disparity is expected to influence consumer spending patterns, as noted by Daan de Jonge, Benchmark’s lead analyst for copper demand. “If you’re looking to purchase items like refrigerators, air conditioners, or cars, the costs of these products are likely to rise, and businesses will probably pass those costs onto consumers,” he stated. He added that depending on the final tariff figures, American consumers might turn to cheaper alternatives from abroad.

De Jonge also discussed the broader economic implications, indicating that the increased costs for raw materials could have ripple effects. “Given the rising expenses of public investment, combined with a devaluing dollar and increasing U.S. debt, we may soon observe effects on employment as infrastructure investments become more costly,” he warned.

Copper holds the position of being the third most consumed metal globally, trailing only behind iron and aluminum. The U.S. relies heavily on imports for nearly half of its copper needs, predominantly sourced from Chile, according to data from the U.S. Geological Survey.

Earlier on the same day, U.S. Commerce Secretary Howard Lutnick commented on Finance Newso’s “Power Lunch,” indicating that the Trump administration aims to boost domestic copper production. He highlighted that the new tariff parallels U.S. duties on imported steel and aluminum, which were previously increased to 50% in early June.

Experts, however, caution that ramping up copper production to meet domestic demand may be a slow process, potentially taking decades to accomplish.

Trump had initiated an investigation into potential tariffs on copper imports on national security grounds back in late February, signaling a long-term focus on the subject.

— Finance Newso’s Jenni Reid and Kevin Breuninger contributed to this report.

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