President Donald Trump introduced his administration will impose a 50% tariff on imported copper, marking a brand new ecalation in his broader levy coverage.
Copper costs surged on Tuesday following President Donald Trump’s announcement that he’ll impose a 50% tariff on copper imports as he seeks to spice up home manufacturing of the essential steel.
The value of copper hit a document excessive following the president’s announcement at a Cupboard assembly in entrance of the press that his administration will impose a 50% tariff on copper, following Trump’s transfer earlier this yr to provoke a nationwide safety overview of copper imports that’s anticipated to conclude this summer time.
“Today we’re doing copper,” the president mentioned. “I believe the tariff on copper, we’re going to make it 50%,” although he did not specify whether or not it will be restricted to copper imports from sure nations. Commerce Secretary Howard Lutnick indicated the tariffs will probably be imposed later in July or in August.
Copper futures rose 13% following the announcement, the largest one-day transfer within the commodity’s historical past, because the tariff plans signaled extra constraints on an already in-demand steel.
TRUMP PLEDGES 50% TARIFF ON COPPER IMPORTS
Copper was already in excessive demand previous to the tariff announcement amid efforts to upscale {the electrical} grid. (Andrey Rudakov/Bloomberg / Getty Photographs)
Phil Flynn, senior market analyst on the Value Futures Group and FOX Enterprise Community, wrote in an investor word that copper was already dealing with a “structural shortage” attributable to it being in excessive demand as a conductive steel amid rising electrical energy demand stemming from information facilities and synthetic intelligence.
Flynn wrote that the “market realized just how critically tied global copper supplies really are” and added that the copper market “may need a shock to get prices higher so we can meet the demand” that is anticipated to proceed to develop sooner or later.
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The Kennecott Copper Mine exterior Salt Lake Metropolis, Utah. (Planet One Photographs/Common Photographs Group by way of Getty Photographs / Getty Photographs)
Adam Turnquist, chief technical strategist for LPL Monetary, wrote in an investor word that buyers “were caught off guard, as the market had been expecting a much lower tariff rate.”
Turnquist added that the surge in demand for U.S. copper pushed home costs to a 25% premium over copper buying and selling on the London Metallic Alternate, which has seen copper inventories depleted and will result in a worldwide provide scarcity.
“Rising copper prices could significantly affect copper-intensive sectors such as building construction, equipment manufacturing, electric vehicles, and electronic products,” Turnquist wrote. “The widespread use of copper might also fuel inflation concerns.”
The value of copper hit a document excessive following President Trump’s announcement at a Cupboard assembly in entrance of the press that his administration will impose a 50% tariff on copper imports. (istock / iStock)
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Copper costs have risen greater than 37% in 2025 to date, together with a 29% rise prior to now six months and a rise of greater than 12% within the final month.
Over the previous yr, copper costs are up greater than 21%.
