Trump’s 50% Copper Tariffs Send Prices Soaring to Record Highs

Copper prices in the U.S. surged to an unprecedented all-time high this Tuesday following President Donald Trump’s announcement of a 50% tariff on copper imports. The move, aimed at bolstering national security and economic stability, triggered intraday spikes not witnessed in nearly four decades, causing significant market volatility.

During a Cabinet meeting, President Trump confirmed the impending tariffs, which Commerce Secretary Howard Lutnick indicated would likely be implemented by the end of July or early August. Immediately following the news, copper futures briefly soared by 17% to a record $5.89 per pound, ultimately closing the day up 13% at $5.68, marking the largest single-day increase since 1989.

Analysts from Morgan Stanley anticipate that these tariffs will initially support higher domestic copper prices due to increased import costs. However, they predict this rise could be short-lived as U.S. inventories expand. Juan Carlos Guajardo of Plusmining noted that the market’s expectation of a lower tariff rate means the 50% levy will lead to a significant price hike and a rush of buying before the new duties take effect.

The U.S. imports over 50% of its refined copper, with Chile, Canada, and Mexico being primary sources. Surprisingly, Chile’s foreign ministry has yet to receive formal communication regarding the tariffs, raising questions about their specific scope. This tariff announcement follows a prior White House probe into copper levies, which concluded that U.S. smelting and refining capacity lags, despite ample reserves.

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