Copper futures soared as much as 17% on Tuesday, their largest intraday gain in at least three decades, after former President Donald Trump announced a 50% import tariff on the industrial metal. Speaking at a Cabinet meeting, Trump confirmed plans to impose new duties on copper, part of a broader tariff push targeting metals, semiconductors, and pharmaceuticals.
“We’re going to make it 50%,” Trump said when asked about the copper rate. The announcement immediately jolted markets, highlighting how sensitive the global copper supply chain is to U.S. trade policy.
Commerce Secretary Howard Lutnick later told CNBC that the Commerce Department had completed its Section 232 investigation into copper, and that the new tariff could be implemented as soon as late July or August 1. “We’ve studied the market, the president now has the ability to set the tariff,” Lutnick said.
The proposed tariff threatens to reshape a vital industrial supply chain at a time when global copper demand is expected to surge, driven by the clean energy transition. The U.S. consumed around 1.6 million tons of refined copper in 2024, relying on imports for 36% of its total needs. Chile remains the top supplier, followed by Canada and Mexico.
The U.S. produced roughly 850,000 tons of primary copper last year, but domestic production alone isn’t enough to meet demand for electric vehicles, grid expansion, and renewable infrastructure.
Trump’s copper move mirrors his first-term actions on steel and aluminum, which shook global trade. Copper, until now, had been spared.
In the same meeting, Trump hinted at a potential 200% tariff on foreign-made pharmaceuticals, though with a grace period of up to 18 months for companies to relocate production to the U.S.
Still, it was copper that sent shockwaves through markets. With the U.S. gearing up for an electrified future and global demand intensifying, a 50% copper tariff could have massive consequences — not just for prices, but for the energy transition itself.
By Tom Kool for Oilprice.com
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