WASHINGTON (Reuters) — President Donald Trump announced plans to impose a 50 percent tariff on copper starting Tuesday, aiming to boost U.S. production of this critical metal used in electric vehicles, military hardware, power grids, and numerous consumer goods.
The announcement sent U.S. Comex copper futures soaring by over 12 percent to an all-time high, catching the industry off guard with its earlier-than-expected timing and steeper-than-anticipated rate.
During a White House cabinet meeting, Trump told reporters he intended to reveal details about the copper tariff later in the day but did not specify when it would take effect.
\”I believe we’re going to set the tariff on copper at 50 percent,\” Trump stated.
Following Trump’s remarks, U.S. Commerce Secretary Howard Lutnick told CNBC that the copper tariffs would likely be implemented by late July or August 1. He added that Trump would share more details on his Truth Social media account sometime Tuesday.
As of Wednesday evening, Trump had yet to formally announce the tariffs, leaving several countries, mining companies, and trade groups awaiting concrete details.
Analysts at RBC Capital Markets predicted short-term volatility in copper prices and stocks of copper companies if the tariff is implemented.
In February, the administration launched a Section 232 investigation into U.S. copper imports.
Although the investigation was set to conclude in November, Lutnick confirmed that the review was already complete.
\”The goal is to bring copper production back to America, which is crucial for our industrial sector,\” Lutnick explained.
The National Mining Association declined to comment, preferring to wait for the official announcement. The American Critical Minerals Association did not immediately respond to requests for comment.
Copper is essential in construction, transportation, electronics, and many other industries. The U.S. currently imports about half of its copper needs annually and operates only three copper smelters.
Major copper mining projects in the U.S. have faced significant opposition in recent years, including Rio Tinto and BHP’s Resolution Copper project in Arizona and Northern Dynasty Minerals’ Pebble Mine project in Alaska.
Shares of Phoenix-based Freeport-McMoRan, the world’s largest copper producer, jumped more than 5 percent at one point during Tuesday’s trading. The company, which produced 1.26 billion pounds (571,530 metric tons) of copper in the U.S. last year, did not immediately respond to a request for comment.
While Freeport stands to benefit from U.S. copper tariffs, it has expressed concerns about potential negative impacts on the global economy. The company has advised Trump to focus on boosting U.S. copper production.
Chile, Canada, and Mexico, the top suppliers of refined copper, copper alloys, and copper products to the U.S. in 2024, are likely to be most affected by the new tariff, according to U.S. Census Bureau data.
Chile, Canada, and Peru – three of the largest copper suppliers to the U.S. – have informed the administration that their imports do not threaten U.S. interests and should not face tariffs. All three countries have free trade agreements with the U.S.
Mexico’s Economy Ministry and Canada’s Finance Ministry did not immediately respond to requests for comment. Chile’s Foreign Ministry stated it had not received any formal communication regarding the tariffs.
Chile’s Mining Ministry declined to comment. Maximo Pacheco, chairman of Codelco, Chile’s leading copper miner, told Reuters the company seeks clarification on which copper products would be affected and whether the tariff would apply to all countries.
Pierre Gratton, president of the Mining Association of Canada, expressed concern about the tariff’s impact on copper smelters like Glencore’s Horne facility in Quebec. Gratton said he is awaiting the Section 232 report from Trump administration officials.
Ole Hansen, head of commodity strategy at Saxo Bank, warned that a 50 percent tariff on copper imports would adversely affect U.S. companies reliant on the metal, as the country is still years away from meeting its copper needs.
\”The U.S. has imported an entire year’s worth of demand in the past six months, so local storage levels are sufficient,\” Hansen noted.
\”I anticipate a correction in copper prices following the initial spike,\” he added.
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