In a provocative announcement on Tuesday, President Donald Trump declared that the United States would be instituting a 50% tariff on imported copper, signaling potential further duties for specific industries to follow.
“Today, we’re focusing on copper,” Trump stated during a Cabinet meeting at the White House. “I believe we will set the tariff on copper at 50%.” However, the timeline for implementing this tariff remains unspecified.
Additionally, Trump hinted at steep tariffs on pharmaceutical imports, potentially reaching as high as 200%. He indicated that pharmaceutical companies would have up to 18 months to relocate their manufacturing operations to the U.S. before these tariffs take effect.
Following the announcement, copper prices soared, hitting a record high with September futures increasing by 10.5% to $5.8955 per pound.
Shares of Freeport-McMoRan, a significant copper mining company, also saw a rise of 5% as investors anticipated that domestic producers would gain from the new tariff structure.
Copper ranks as the third most widely consumed metal worldwide, trailing only iron and aluminum. The U.S. imports nearly half of its copper supply, predominantly sourced from Chile, as per the U.S. Geological Survey.
In February, Trump mandated an investigation into the imposition of new tariffs on copper imports, citing national security concerns as the rationale behind this decision.
Commerce Secretary Howard Lutnick, speaking on Finance Newso’s “Power Lunch,” confirmed the completion of that investigation on the same day. “The goal is to bring copper production back to the United States,” Lutnick explained. He also noted that these new copper tariffs would align with existing U.S. tariffs on steel and aluminum, which Trump had previously increased to 50% in early June.
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— Finance Newso’s Spencer Kimball contributed to this report.
