Trump Announces 50% Tariff on Copper Imports
President Donald Trump has announced a 50% tariff on copper imports starting on August 1st, referencing national security concerns and pledging to revive the U.S. copper industry. The decision, which comes after a formal investigation and a series of offhand remarks, triggered a record spike in U.S. copper prices and raised concerns about inflation and supply chain disruptions. Trump claimed the move would help the country "build a DOMINANT Copper Industry" and criticized past administrations for weakening domestic production.
Global markets reacted swiftly. Copper futures surged in New York, reaching historic highs, while the global benchmark price on the London Metal Exchange dropped. Analysts warn the move could backfire by raising costs for U.S. manufacturers and undermining Trump's broader economic goals. The U.S. heavily relies on copper imports—mainly from Chile and Canada—and lacks the domestic infrastructure to meet demand. “The US does not have nearly enough mine/smelter/refinery capacity to be self-sufficient in copper,” analysts at Jefferies wrote.
Trump also announced a 50% tariff on goods from Brazil, escalating tensions with President Lula da Silva and accusing Brazil of censorship and election interference. Lula responded by promising a lawful response. Negotiations with the European Union and other trade partners are ongoing, with countries scrambling to secure exemptions before the August 1st deadline. Meanwhile, U.S. companies are rushing to stockpile copper before the tariffs take effect, adding more volatility to an already tense global market.
