Tariff shock sends copper prices to record highs
President Donald Trump said Tuesday he will impose a 50% tariff on all copper imported into the United States, marking the fourth broad tariff of his second term. The announcement came during a Cabinet meeting, though the administration has not provided a specific timeline for implementation.
“Today we’re doing copper,” Trump said, confirming that the tariff rate would be 50%. The White House declined to comment further on when the measure would take effect. The tariff follows a Section 232 investigation launched in February, which allows the president to impose trade restrictions on national security grounds.
This decision adds copper to a growing list of materials facing elevated tariffs. Currently, imported steel and aluminum are subject to 50% tariffs, while foreign cars and auto parts face 25%. Trump also hinted that pharmaceuticals would soon face a 200% tariff, though implementation may be delayed as the administration pushes for more domestic production.
Economic impact raises alarm among manufacturers
The announcement immediately sent copper futures surging, with New York contracts jumping up to 15% and hitting a record $5.68 per pound. The price surge reflects not just the tariff shock but also stockpiling behavior by importers seeking to beat the tariff’s effect.
“A 50% increase will be a massive tax on consumers of copper,” said Ole Hansen, head of commodity strategy at Saxo Bank. Copper is used in a wide range of industries including electronics, construction, and automotive manufacturing. Higher input costs could ripple through the economy and drive up prices on finished goods.
The United States imported $17 billion worth of copper last year, with Chile accounting for $6 billion of that total. The new tariff could significantly impact trade with key suppliers, especially in Latin America.
Pharmaceutical tariffs next in line
Trump also said that 200% tariffs on pharmaceutical imports are coming “very soon,” citing national security concerns and the need for domestic manufacturing. Although no specific policy has been enacted, the administration began a formal review of pharmaceutical imports in April.
While Trump previously exempted pharmaceuticals from tariffs, he now argues that dependency on foreign drug supply chains presents a risk. Several pharmaceutical companies have announced expansions in their U.S. manufacturing capabilities, though many of those plans predate Trump’s second term.
Tariff strategy remains fluid as August deadline looms
Meanwhile, Trump extended the pause on his “reciprocal” tariffs until August 1. Originally set to resume this Wednesday, the tariffs remain on hold as the administration continues negotiations with major trading partners. Trump has sent letters to global leaders outlining new proposed tariff rates, which could take effect unless new agreements are reached.