Copper Prices Reach New Record High After Trump Announces 50% Tariff

Copper futures on the Comex surged 17% to a record $5.8955 a pound after President Donald Trump announced plans to impose a 50% tariff on imports of the metal as part of a set of looming sectoral tariffs. Trump said he planned to implement the copper levy under Section 232 of the Trade Expansion act, which gives the president broad authority to impose restrictions on national security grounds.

Copper futures on the Comex surged 17% to a record $5.8955 a pound after US President Donald Trump announced plans to impose a 50% tariff on imports of the metal [1]. The tariff is part of a broader set of looming sectoral tariffs and is to be implemented under Section 232 of the Trade Expansion Act, which grants the president broad authority to impose restrictions on national security grounds.

Trump made the announcement during a cabinet meeting on Tuesday, stating, "I believe the tariff on copper we’re going to make it 50%." The president had directed the Commerce Secretary in late February to investigate foreign copper imports under Section 232, with a report due within 270 days [1].

The proposed tariff has sent shockwaves through the copper market, with traders and investors alike reacting to the potential impact on global copper supply and demand dynamics. Copper is a critical component in various industries, including construction, manufacturing, and electronics, and any significant disruption in its supply could have far-reaching economic implications.

Trump's use of tariffs as a central part of his foreign policy strategy is not new. Throughout his presidency, he has repeatedly emphasized the importance of tariffs as a tool to protect American interests and promote domestic industries [2]. The proposed copper tariff is just one example of his broader trade policy, which includes tariffs on a range of goods and sectors, including drugs, semiconductors, and metals.

The copper market's reaction to the proposed tariff highlights the volatility and sensitivity of commodity markets to geopolitical events. As the Trump administration continues to explore the use of tariffs as a means of addressing perceived threats to national security, investors and financial professionals should remain vigilant and monitor the evolving situation closely.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-08/comex-copper-surges-to-record-after-trump-calls-for-50-tariff
[2] https://www.tradecomplianceresourcehub.com/2025/07/07/trump-2-0-tariff-tracker/