President Donald Trump signed an order on Wednesday imposing a universal 50% tariff on copper imports, marking the latest metal targeted with steep import taxes under his administration.
Market Reaction and Impact on Copper Prices
Following the announcement, U.S. copper prices dropped as much as 18% in after-hours trading. Shares of copper mining companies Freeport-McMoRan and Southern Copper fell roughly 10% and over 6%, respectively. If this decline persists through Thursday’s trading, it would represent copper’s largest single-day drop since 1989.
The increased copper tariffs will take effect this Friday, according to a White House fact sheet. This follows 50% tariffs already imposed on steel and aluminum imports. The administration states these duties aim to strengthen domestic industries and address “trade imbalances.”
Concerns Over Broader Economic Impact
Experts warn that the tariffs may lead to higher prices on products using copper, from construction materials to electronics. The Tax Foundation has also cautioned that ongoing tariffs and trade investigations targeting sectors like autos, lumber, and pharmaceuticals could dampen overall U.S. economic growth.
Copper ranks as the third-most-consumed metal in the U.S., after iron and aluminum. The country imports nearly half of its copper, primarily from Chile, based on data from the U.S. Geological Survey.
Author’s Opinion
While intended to protect domestic production, steep tariffs on essential materials like copper risk backfiring by driving up costs for manufacturers and consumers alike. This could slow construction, electronics manufacturing, and infrastructure development, sectors critical to economic growth. Instead of fostering competitiveness, such measures might weaken industries reliant on affordable raw materials and strain supply chains.
Featured image credit: Ra Dragon via Unsplash
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