Plans by US President Donald Trump to impose significant import tariffs on copper have triggered a surge in costs for American factories. On Tuesday, New York futures traded 25 per cent higher than global benchmarks. The price spike followed Trump’s statement regarding a prospective 50 per cent tariff on copper imports, reinforcing an earlier threat made in February to apply targeted levies on the essential industrial metal.
A 50 per cent tariff would mirror the duties already applied to steel and aluminum to boost US production. However, it could severely impact American factories, which depend on overseas suppliers for almost half of their copper needs. For several months, copper prices in New York have steadily increased as buyers stockpile in anticipation of the tariffs. Consequently, American manufacturers’ input costs have risen above prices paid by competitors globally.
On Tuesday, the divergence reached record levels, with Comex futures trading at a 25 per cent premium compared to the London global benchmark. US copper buyers have voiced concerns about the long-term consequences of the levies. They argue that these tariffs risk undermining Trump’s primary goals of revitalising manufacturing and challenging China’s industrial dominance. Should these tariffs be enacted, this will likely impact US manufacturers significantly.
