Copper Prices Soar to Record High as Trump Announces 50% Tariff

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Photo Credit: Bernhard Warner

The U.S. copper market surged to record highs on Tuesday after former President Donald Trump announced a 50% tariff on imported copper, sparking concerns over rising costs for American industries and consumers.

Speaking to reporters at the White House, Mr. Trump said the tariff would be implemented “very soon,” a claim later confirmed by Commerce Secretary Howard Lutnick on CNBC. Lutnick noted that the measure is expected to take effect in late July or early August.

The announcement sent copper futures on the New York Mercantile Exchange soaring, with U.S. prices sharply diverging from global benchmarks in London. This unprecedented gap signals that American importers may face significantly higher costs in the coming months.

Analysts had anticipated a tariff, but the scale of the measure 50% surpassed expectations.

“The market was caught off guard by the magnitude,” said commodities analyst Rachel Kim at BTG Pactual. “This has led to a spike in prices as U.S. buyers scramble to secure copper ahead of the tariff deadline.”

The United States produces a substantial amount of copper domestically but still imports around 40% of its supply much of it from Chile, the world’s largest copper exporter. With demand for the versatile metal remaining strong across sectors such as housing, automotive, electronics, and renewable energy, analysts warn that the tariff may push the added cost onto end consumers.

“This move is likely to translate into higher prices for both producers and consumers, with potential negative effects on overall economic output,” BTG Pactual noted in a research memo.

The copper tariff follows a broader pattern of protectionist trade policies under the Trump administration. Since February, the Commerce Department has been investigating whether foreign copper imports pose a threat to national and economic security, echoing earlier probes into steel, aluminum, and automobiles. Similar inquiries are now underway in sectors such as pharmaceuticals, semiconductors, and lumber.

While the former president’s supporters argue that such tariffs protect American industry, critics contend they contribute to inflation and disrupt global supply chains. The broader market appeared resilient, brushing off the news of country-level tariffs, but the copper sector reacted swiftly due to its central role in infrastructure, manufacturing, and the green energy transition.

Copper theft, a known issue during previous price spikes, may also rise. Historically, surging copper prices have led to increased criminal activity, including the stripping of copper from streetlights, rail systems, and plumbing infrastructure.

In response to global copper supply concerns, the Biden administration, in partnership with the European Union, committed nearly $1 billion in 2022 to a major infrastructure project in copper-rich African nations regions where China already holds significant influence.

As tariffs loom and prices climb, American manufacturers and construction firms are bracing for ripple effects throughout the economy, with many calling for clarity and stability in trade policy.

“Uncertainty is the enemy of investment,” said trade expert Linda Moreau. “When the rules of global commerce are constantly shifting, it’s difficult for businesses to plan ahead especially in industries as foundational as copper.”