Billionaire Friedland welcomes Trump's copper tariffs – FT

Billionaire Friedland welcomes Trump's copper tariffs – FT

President Trump announced a 50% tariff on copper imports, effective from Aug. 1, citing national security concerns. This move, which follows a robust assessment, is set to significantly impact the global copper market and related sectors [1].

Copper, the third most widely used metal globally, is crucial for various industries, including construction, electronics, transportation, and defense. The U.S. imports nearly half of its copper needs, primarily from Chile [1]. The announcement of the tariff sent copper prices skyrocketing to record highs on July 10, with prices rising by as much as 17% in a single day [2].

Morgan Stanley analysts identified Freeport-McMoRan and Southern Copper Corporation as potential beneficiaries of the new tariffs. Freeport-McMoRan, with strong connections to the Commodity Exchange (COMEX) options and futures market, is seen as the largest beneficiary due to its significant U.S.-based production and sales [2]. Southern Copper Corporation, with 40% of its contracts linked to COMEX, is also expected to benefit from higher tariff pricing without incurring additional tariffs on its Mexican and U.S. sales [2].

Billionaire Friedland has welcomed the tariffs, stating that they could help bolster the U.S. copper industry and reduce dependence on foreign imports. However, the tariffs may also fuel inflation concerns due to the widespread use of copper in various sectors [2].

The tariffs are part of a broader trade war strategy by the Trump administration, which has also targeted Brazil with sweeping tariff threats. The impact of these tariffs on the global economy and copper prices remains to be seen, but investors should closely monitor the situation and consider the potential benefits and risks [1, 2].

References:
[1] https://www.axios.com/2025/07/10/trump-copper-tariff-50-per-cent
[2] https://www.businessinsider.com/copper-prices-trump-tariffs-commodities-trade-war-fcx-scco-2025-7