Trump Announces 50% Tariffs on Semi-Finished Copper Products, Copper Prices Plummet

US copper prices plummeted by 20% in late trading after President Trump announced 50% tariffs on semi-finished copper imports starting August 1. The tariffs do not apply to raw copper, causing a sharp decline in Comex copper prices.

US copper prices experienced a significant decline of 20% in late trading on Wednesday following President Donald Trump's announcement of a 50% tariff on semi-finished copper imports starting August 1. The tariffs, which are part of a broader effort to protect domestic manufacturers, do not apply to raw copper, causing a sharp drop in Comex copper prices.

The White House announced the tariffs on Wednesday, citing national security concerns. The tariffs will cover semi-finished copper products and copper-intensive derivative products, effective as early as Friday. This announcement sent American copper prices tumbling by as much as 18%—the largest intraday drop since 1989 [2]. Mining giants such as Freeport-McMoRan and Southern Copper saw their shares fall by approximately 10% and 6%, respectively [2].

The tariffs are part of a series of sector-specific measures from the Trump administration, which has previously imposed similar tariff levels on steel and aluminum imports. Critics warn that these tariffs could drive up prices on construction materials, electronics, and potentially hamper the broader U.S. economy [2].

The tariffs exclude raw copper, which is a key material used in various industries, including electric vehicles, power grids, semiconductors, and defense electronics. This exclusion has led to a sharp decline in Comex copper prices, which eased by 21.66% to $4.376 a pound, or $9,647 per metric ton, earlier in the day [4].

The tariffs are expected to have limited consequences for India's copper exports to the U.S., valued at $360 million in 2025. The uniform application of tariffs to all countries, including India, means that the impact on India's copper trade is expected to be limited [3]. However, the tariffs may make copper scrap imports from the U.S. less economical, altering bilateral copper trading patterns.

The U.S. decision to impose tariffs on semi-finished copper products aims to decrease foreign copper reliance, which the government considers risky for vital sectors such as defense, clean energy, and infrastructure. The tariffs are intended to protect domestic manufacturers of electronics, plumbing fittings, and other products, but not miners, smelters, or others looking to invest in domestic production capacity [3].

The market remains cautious, with analysts noting the risk of additional tariffs on refined copper in the future. The U.S. Secretary of Commerce has recommended a phased universal tariff on refined copper, with a 15% tariff in 2027 and a 30% tariff in 2028 [4].

References:
[1] https://www.investors.com/news/copper-prices-tank-trump-import-tariffs-stock-market-responds/
[2] https://www.marketscreener.com/news/trump-imposes-50-tariff-on-copper-prices-plunge-following-announcement-ce7c5fdcdd8df623
[3] https://timesofindia.indiatimes.com/business/india-business/us-slaps-50-tariff-on-copper-imports-white-house-order-to-hit-semi-finished-products-india-to-see-limited-impact/articleshow/123016819.cms
[4] https://seekingalpha.com/news/4475198-commodity-roundup-copper-futures-extend-losses-as-trump-tariffs-shock-market